Bill Amendment: IL SB2408 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INSURANCE GUARANTY FUND
Status: 2022-02-23 - Added as Chief Co-Sponsor Sen. Melinda Bush [SB2408 Detail]
Download: Illinois-2021-SB2408-House_Amendment_005.html
Bill Title: INSURANCE GUARANTY FUND
Status: 2022-02-23 - Added as Chief Co-Sponsor Sen. Melinda Bush [SB2408 Detail]
Download: Illinois-2021-SB2408-House_Amendment_005.html
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1 | AMENDMENT TO SENATE BILL 2408
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2 | AMENDMENT NO. ______. Amend Senate Bill 2408, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Power Agency Act is amended by | ||||||
6 | changing Sections 1-20 and 1-75 as follows:
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7 | (20 ILCS 3855/1-20) | ||||||
8 | Sec. 1-20. General powers and duties of the Agency. | ||||||
9 | (a) The Agency is authorized to do each of the following: | ||||||
10 | (1) Develop electricity procurement plans to ensure | ||||||
11 | adequate, reliable, affordable, efficient, and | ||||||
12 | environmentally sustainable electric service at the lowest | ||||||
13 | total cost over time, taking into account any benefits of | ||||||
14 | price stability, for electric utilities that on December | ||||||
15 | 31, 2005 provided electric service to at least 100,000 | ||||||
16 | customers in Illinois and for small multi-jurisdictional |
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1 | electric utilities that (A) on December 31, 2005 served | ||||||
2 | less than 100,000 customers in Illinois and (B) request a | ||||||
3 | procurement plan for their Illinois jurisdictional load. | ||||||
4 | Except as provided in paragraph (1.5) of this subsection | ||||||
5 | (a), the electricity procurement plans shall be updated on | ||||||
6 | an annual basis and shall include electricity generated | ||||||
7 | from renewable resources sufficient to achieve the | ||||||
8 | standards specified in this Act. Beginning with the | ||||||
9 | delivery year commencing June 1, 2017, develop procurement | ||||||
10 | plans to include zero emission credits generated from zero | ||||||
11 | emission facilities sufficient to achieve the standards | ||||||
12 | specified in this Act. Beginning with the delivery year | ||||||
13 | commencing on June 1, 2022, the Agency is authorized to | ||||||
14 | develop carbon mitigation credit procurement plans to | ||||||
15 | include carbon mitigation credits generated from | ||||||
16 | carbon-free energy resources sufficient to achieve the | ||||||
17 | standards specified in this Act. | ||||||
18 | (1.5) Develop a long-term renewable resources | ||||||
19 | procurement plan in accordance with subsection (c) of | ||||||
20 | Section 1-75 of this Act for renewable energy credits in | ||||||
21 | amounts sufficient to achieve the standards specified in | ||||||
22 | this Act for delivery years commencing June 1, 2017 and | ||||||
23 | for the programs and renewable energy credits specified in | ||||||
24 | Section 1-56 of this Act. Electricity procurement plans | ||||||
25 | for delivery years commencing after May 31, 2017, shall | ||||||
26 | not include procurement of renewable energy resources. |
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1 | (2) Conduct competitive procurement processes to | ||||||
2 | procure the supply resources identified in the electricity | ||||||
3 | procurement plan, pursuant to Section 16-111.5 of the | ||||||
4 | Public Utilities Act, and, for the delivery year | ||||||
5 | commencing June 1, 2017, conduct procurement processes to | ||||||
6 | procure zero emission credits from zero emission | ||||||
7 | facilities, under subsection (d-5) of Section 1-75 of this | ||||||
8 | Act. For the delivery year commencing June 1, 2022, the | ||||||
9 | Agency is authorized to conduct procurement processes to | ||||||
10 | procure carbon mitigation credits from carbon-free energy | ||||||
11 | resources, under subsection (d-10) of Section 1-75 of this | ||||||
12 | Act. | ||||||
13 | (2.5) Beginning with the procurement for the 2017 | ||||||
14 | delivery year, conduct competitive procurement processes | ||||||
15 | and implement programs to procure renewable energy credits | ||||||
16 | identified in the long-term renewable resources | ||||||
17 | procurement plan developed and approved under subsection | ||||||
18 | (c) of Section 1-75 of this Act and Section 16-111.5 of the | ||||||
19 | Public Utilities Act. | ||||||
20 | (3) Develop electric generation and co-generation | ||||||
21 | facilities that use indigenous coal or renewable | ||||||
22 | resources, or both, financed with bonds issued by the | ||||||
23 | Illinois Finance Authority. | ||||||
24 | (4) Supply electricity from the Agency's facilities at | ||||||
25 | cost to one or more of the following: municipal electric | ||||||
26 | systems, governmental aggregators, or rural electric |
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1 | cooperatives in Illinois. | ||||||
2 | (b) Except as otherwise limited by this Act, the Agency | ||||||
3 | has all of the powers necessary or convenient to carry out the | ||||||
4 | purposes and provisions of this Act, including without | ||||||
5 | limitation, each of the following: | ||||||
6 | (1) To have a corporate seal, and to alter that seal at | ||||||
7 | pleasure, and to use it by causing it or a facsimile to be | ||||||
8 | affixed or impressed or reproduced in any other manner. | ||||||
9 | (2) To use the services of the Illinois Finance | ||||||
10 | Authority necessary to carry out the Agency's purposes. | ||||||
11 | (3) To negotiate and enter into loan agreements and | ||||||
12 | other agreements with the Illinois Finance Authority. | ||||||
13 | (4) To obtain and employ personnel and hire | ||||||
14 | consultants that are necessary to fulfill the Agency's | ||||||
15 | purposes, and to make expenditures for that purpose within | ||||||
16 | the appropriations for that purpose. | ||||||
17 | (5) To purchase, receive, take by grant, gift, devise, | ||||||
18 | bequest, or otherwise, lease, or otherwise acquire, own, | ||||||
19 | hold, improve, employ, use, and otherwise deal in and | ||||||
20 | with, real or personal property whether tangible or | ||||||
21 | intangible, or any interest therein, within the State. | ||||||
22 | (6) To acquire real or personal property, whether | ||||||
23 | tangible or intangible, including without limitation | ||||||
24 | property rights, interests in property, franchises, | ||||||
25 | obligations, contracts, and debt and equity securities, | ||||||
26 | and to do so by the exercise of the power of eminent domain |
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1 | in accordance with Section 1-21; except that any real | ||||||
2 | property acquired by the exercise of the power of eminent | ||||||
3 | domain must be located within the State. | ||||||
4 | (7) To sell, convey, lease, exchange, transfer, | ||||||
5 | abandon, or otherwise dispose of, or mortgage, pledge, or | ||||||
6 | create a security interest in, any of its assets, | ||||||
7 | properties, or any interest therein, wherever situated. | ||||||
8 | (8) To purchase, take, receive, subscribe for, or | ||||||
9 | otherwise acquire, hold, make a tender offer for, vote, | ||||||
10 | employ, sell, lend, lease, exchange, transfer, or | ||||||
11 | otherwise dispose of, mortgage, pledge, or grant a | ||||||
12 | security interest in, use, and otherwise deal in and with, | ||||||
13 | bonds and other obligations, shares, or other securities | ||||||
14 | (or interests therein) issued by others, whether engaged | ||||||
15 | in a similar or different business or activity. | ||||||
16 | (9) To make and execute agreements, contracts, and | ||||||
17 | other instruments necessary or convenient in the exercise | ||||||
18 | of the powers and functions of the Agency under this Act, | ||||||
19 | including contracts with any person, including personal | ||||||
20 | service contracts, or with any local government, State | ||||||
21 | agency, or other entity; and all State agencies and all | ||||||
22 | local governments are authorized to enter into and do all | ||||||
23 | things necessary to perform any such agreement, contract, | ||||||
24 | or other instrument with the Agency. No such agreement, | ||||||
25 | contract, or other instrument shall exceed 40 years. | ||||||
26 | (10) To lend money, invest and reinvest its funds in |
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1 | accordance with the Public Funds Investment Act, and take | ||||||
2 | and hold real and personal property as security for the | ||||||
3 | payment of funds loaned or invested. | ||||||
4 | (11) To borrow money at such rate or rates of interest | ||||||
5 | as the Agency may determine, issue its notes, bonds, or | ||||||
6 | other obligations to evidence that indebtedness, and | ||||||
7 | secure any of its obligations by mortgage or pledge of its | ||||||
8 | real or personal property, machinery, equipment, | ||||||
9 | structures, fixtures, inventories, revenues, grants, and | ||||||
10 | other funds as provided or any interest therein, wherever | ||||||
11 | situated. | ||||||
12 | (12) To enter into agreements with the Illinois | ||||||
13 | Finance Authority to issue bonds whether or not the income | ||||||
14 | therefrom is exempt from federal taxation. | ||||||
15 | (13) To procure insurance against any loss in | ||||||
16 | connection with its properties or operations in such | ||||||
17 | amount or amounts and from such insurers, including the | ||||||
18 | federal government, as it may deem necessary or desirable, | ||||||
19 | and to pay any premiums therefor. | ||||||
20 | (14) To negotiate and enter into agreements with | ||||||
21 | trustees or receivers appointed by United States | ||||||
22 | bankruptcy courts or federal district courts or in other | ||||||
23 | proceedings involving adjustment of debts and authorize | ||||||
24 | proceedings involving adjustment of debts and authorize | ||||||
25 | legal counsel for the Agency to appear in any such | ||||||
26 | proceedings. |
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1 | (15) To file a petition under Chapter 9 of Title 11 of | ||||||
2 | the United States Bankruptcy Code or take other similar | ||||||
3 | action for the adjustment of its debts. | ||||||
4 | (16) To enter into management agreements for the | ||||||
5 | operation of any of the property or facilities owned by | ||||||
6 | the Agency. | ||||||
7 | (17) To enter into an agreement to transfer and to | ||||||
8 | transfer any land, facilities, fixtures, or equipment of | ||||||
9 | the Agency to one or more municipal electric systems, | ||||||
10 | governmental aggregators, or rural electric agencies or | ||||||
11 | cooperatives, for such consideration and upon such terms | ||||||
12 | as the Agency may determine to be in the best interest of | ||||||
13 | the citizens of Illinois. | ||||||
14 | (18) To enter upon any lands and within any building | ||||||
15 | whenever in its judgment it may be necessary for the | ||||||
16 | purpose of making surveys and examinations to accomplish | ||||||
17 | any purpose authorized by this Act. | ||||||
18 | (19) To maintain an office or offices at such place or | ||||||
19 | places in the State as it may determine. | ||||||
20 | (20) To request information, and to make any inquiry, | ||||||
21 | investigation, survey, or study that the Agency may deem | ||||||
22 | necessary to enable it effectively to carry out the | ||||||
23 | provisions of this Act. | ||||||
24 | (21) To accept and expend appropriations. | ||||||
25 | (22) To engage in any activity or operation that is | ||||||
26 | incidental to and in furtherance of efficient operation to |
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1 | accomplish the Agency's purposes, including hiring | ||||||
2 | employees that the Director deems essential for the | ||||||
3 | operations of the Agency. | ||||||
4 | (23) To adopt, revise, amend, and repeal rules with | ||||||
5 | respect to its operations, properties, and facilities as | ||||||
6 | may be necessary or convenient to carry out the purposes | ||||||
7 | of this Act, subject to the provisions of the Illinois | ||||||
8 | Administrative Procedure Act and Sections 1-22 and 1-35 of | ||||||
9 | this Act. | ||||||
10 | (24) To establish and collect charges and fees as | ||||||
11 | described in this Act.
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12 | (25) To conduct competitive gasification feedstock | ||||||
13 | procurement processes to procure the feedstocks for the | ||||||
14 | clean coal SNG brownfield facility in accordance with the | ||||||
15 | requirements of Section 1-78 of this Act. | ||||||
16 | (26) To review, revise, and approve sourcing | ||||||
17 | agreements and mediate and resolve disputes between gas | ||||||
18 | utilities and the clean coal SNG brownfield facility | ||||||
19 | pursuant to subsection (h-1) of Section 9-220 of the | ||||||
20 | Public Utilities Act. | ||||||
21 | (27) To request, review and accept proposals, execute | ||||||
22 | contracts, purchase renewable energy credits and otherwise | ||||||
23 | dedicate funds from the Illinois Power Agency Renewable | ||||||
24 | Energy Resources Fund to create and carry out the | ||||||
25 | objectives of the Illinois Solar for All Program program | ||||||
26 | in accordance with Section 1-56 of this Act. |
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1 | (Source: P.A. 99-906, eff. 6-1-17 .)
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2 | (20 ILCS 3855/1-75) | ||||||
3 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
4 | and Procurement Bureau has the following duties and | ||||||
5 | responsibilities: | ||||||
6 | (a) The Planning and Procurement Bureau shall each year, | ||||||
7 | beginning in 2008, develop procurement plans and conduct | ||||||
8 | competitive procurement processes in accordance with the | ||||||
9 | requirements of Section 16-111.5 of the Public Utilities Act | ||||||
10 | for the eligible retail customers of electric utilities that | ||||||
11 | on December 31, 2005 provided electric service to at least | ||||||
12 | 100,000 customers in Illinois. Beginning with the delivery | ||||||
13 | year commencing on June 1, 2017, the Planning and Procurement | ||||||
14 | Bureau shall develop plans and processes for the procurement | ||||||
15 | of zero emission credits from zero emission facilities in | ||||||
16 | accordance with the requirements of subsection (d-5) of this | ||||||
17 | Section. Beginning on the effective date of this amendatory | ||||||
18 | Act of the 102nd General Assembly, the Planning and | ||||||
19 | Procurement Bureau shall develop plans and processes for the | ||||||
20 | procurement of carbon mitigation credits from carbon-free | ||||||
21 | energy resources in accordance with the requirements of | ||||||
22 | subsection (d-10) of this Section. The Planning and | ||||||
23 | Procurement Bureau shall also develop procurement plans and | ||||||
24 | conduct competitive procurement processes in accordance with | ||||||
25 | the requirements of Section 16-111.5 of the Public Utilities |
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1 | Act for the eligible retail customers of small | ||||||
2 | multi-jurisdictional electric utilities that (i) on December | ||||||
3 | 31, 2005 served less than 100,000 customers in Illinois and | ||||||
4 | (ii) request a procurement plan for their Illinois | ||||||
5 | jurisdictional load. This Section shall not apply to a small | ||||||
6 | multi-jurisdictional utility until such time as a small | ||||||
7 | multi-jurisdictional utility requests the Agency to prepare a | ||||||
8 | procurement plan for their Illinois jurisdictional load. For | ||||||
9 | the purposes of this Section, the term "eligible retail | ||||||
10 | customers" has the same definition as found in Section | ||||||
11 | 16-111.5(a) of the Public Utilities Act. | ||||||
12 | Beginning with the plan or plans to be implemented in the | ||||||
13 | 2017 delivery year, the Agency shall no longer include the | ||||||
14 | procurement of renewable energy resources in the annual | ||||||
15 | procurement plans required by this subsection (a), except as | ||||||
16 | provided in subsection (q) of Section 16-111.5 of the Public | ||||||
17 | Utilities Act, and shall instead develop a long-term renewable | ||||||
18 | resources procurement plan in accordance with subsection (c) | ||||||
19 | of this Section and Section 16-111.5 of the Public Utilities | ||||||
20 | Act. | ||||||
21 | (1) The Agency shall each year, beginning in 2008, as | ||||||
22 | needed, issue a request for qualifications for experts or | ||||||
23 | expert consulting firms to develop the procurement plans | ||||||
24 | in accordance with Section 16-111.5 of the Public | ||||||
25 | Utilities Act. In order to qualify an expert or expert | ||||||
26 | consulting firm must have: |
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1 | (A) direct previous experience assembling | ||||||
2 | large-scale power supply plans or portfolios for | ||||||
3 | end-use customers; | ||||||
4 | (B) an advanced degree in economics, mathematics, | ||||||
5 | engineering, risk management, or a related area of | ||||||
6 | study; | ||||||
7 | (C) 10 years of experience in the electricity | ||||||
8 | sector, including managing supply risk; | ||||||
9 | (D) expertise in wholesale electricity market | ||||||
10 | rules, including those established by the Federal | ||||||
11 | Energy Regulatory Commission and regional transmission | ||||||
12 | organizations; | ||||||
13 | (E) expertise in credit protocols and familiarity | ||||||
14 | with contract protocols; | ||||||
15 | (F) adequate resources to perform and fulfill the | ||||||
16 | required functions and responsibilities; and | ||||||
17 | (G) the absence of a conflict of interest and | ||||||
18 | inappropriate bias for or against potential bidders or | ||||||
19 | the affected electric utilities. | ||||||
20 | (2) The Agency shall each year, as needed, issue a | ||||||
21 | request for qualifications for a procurement administrator | ||||||
22 | to conduct the competitive procurement processes in | ||||||
23 | accordance with Section 16-111.5 of the Public Utilities | ||||||
24 | Act. In order to qualify an expert or expert consulting | ||||||
25 | firm must have: | ||||||
26 | (A) direct previous experience administering a |
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1 | large-scale competitive procurement process; | ||||||
2 | (B) an advanced degree in economics, mathematics, | ||||||
3 | engineering, or a related area of study; | ||||||
4 | (C) 10 years of experience in the electricity | ||||||
5 | sector, including risk management experience; | ||||||
6 | (D) expertise in wholesale electricity market | ||||||
7 | rules, including those established by the Federal | ||||||
8 | Energy Regulatory Commission and regional transmission | ||||||
9 | organizations; | ||||||
10 | (E) expertise in credit and contract protocols; | ||||||
11 | (F) adequate resources to perform and fulfill the | ||||||
12 | required functions and responsibilities; and | ||||||
13 | (G) the absence of a conflict of interest and | ||||||
14 | inappropriate bias for or against potential bidders or | ||||||
15 | the affected electric utilities. | ||||||
16 | (3) The Agency shall provide affected utilities and | ||||||
17 | other interested parties with the lists of qualified | ||||||
18 | experts or expert consulting firms identified through the | ||||||
19 | request for qualifications processes that are under | ||||||
20 | consideration to develop the procurement plans and to | ||||||
21 | serve as the procurement administrator. The Agency shall | ||||||
22 | also provide each qualified expert's or expert consulting | ||||||
23 | firm's response to the request for qualifications. All | ||||||
24 | information provided under this subparagraph shall also be | ||||||
25 | provided to the Commission. The Agency may provide by rule | ||||||
26 | for fees associated with supplying the information to |
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1 | utilities and other interested parties. These parties | ||||||
2 | shall, within 5 business days, notify the Agency in | ||||||
3 | writing if they object to any experts or expert consulting | ||||||
4 | firms on the lists. Objections shall be based on: | ||||||
5 | (A) failure to satisfy qualification criteria; | ||||||
6 | (B) identification of a conflict of interest; or | ||||||
7 | (C) evidence of inappropriate bias for or against | ||||||
8 | potential bidders or the affected utilities. | ||||||
9 | The Agency shall remove experts or expert consulting | ||||||
10 | firms from the lists within 10 days if there is a | ||||||
11 | reasonable basis for an objection and provide the updated | ||||||
12 | lists to the affected utilities and other interested | ||||||
13 | parties. If the Agency fails to remove an expert or expert | ||||||
14 | consulting firm from a list, an objecting party may seek | ||||||
15 | review by the Commission within 5 days thereafter by | ||||||
16 | filing a petition, and the Commission shall render a | ||||||
17 | ruling on the petition within 10 days. There is no right of | ||||||
18 | appeal of the Commission's ruling. | ||||||
19 | (4) The Agency shall issue requests for proposals to | ||||||
20 | the qualified experts or expert consulting firms to | ||||||
21 | develop a procurement plan for the affected utilities and | ||||||
22 | to serve as procurement administrator. | ||||||
23 | (5) The Agency shall select an expert or expert | ||||||
24 | consulting firm to develop procurement plans based on the | ||||||
25 | proposals submitted and shall award contracts of up to 5 | ||||||
26 | years to those selected. |
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1 | (6) The Agency shall select an expert or expert | ||||||
2 | consulting firm, with approval of the Commission, to serve | ||||||
3 | as procurement administrator based on the proposals | ||||||
4 | submitted. If the Commission rejects, within 5 days, the | ||||||
5 | Agency's selection, the Agency shall submit another | ||||||
6 | recommendation within 3 days based on the proposals | ||||||
7 | submitted. The Agency shall award a 5-year contract to the | ||||||
8 | expert or expert consulting firm so selected with | ||||||
9 | Commission approval. | ||||||
10 | (b) The experts or expert consulting firms retained by the | ||||||
11 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
12 | conduct a competitive procurement process as prescribed in | ||||||
13 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
14 | adequate, reliable, affordable, efficient, and environmentally | ||||||
15 | sustainable electric service at the lowest total cost over | ||||||
16 | time, taking into account any benefits of price stability, for | ||||||
17 | eligible retail customers of electric utilities that on | ||||||
18 | December 31, 2005 provided electric service to at least | ||||||
19 | 100,000 customers in the State of Illinois, and for eligible | ||||||
20 | Illinois retail customers of small multi-jurisdictional | ||||||
21 | electric utilities that (i) on December 31, 2005 served less | ||||||
22 | than 100,000 customers in Illinois and (ii) request a | ||||||
23 | procurement plan for their Illinois jurisdictional load. | ||||||
24 | (c) Renewable portfolio standard. | ||||||
25 | (1)(A) The Agency shall develop a long-term renewable | ||||||
26 | resources procurement plan that shall include procurement |
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1 | programs and competitive procurement events necessary to | ||||||
2 | meet the goals set forth in this subsection (c). The | ||||||
3 | initial long-term renewable resources procurement plan | ||||||
4 | shall be released for comment no later than 160 days after | ||||||
5 | June 1, 2017 (the effective date of Public Act 99-906). | ||||||
6 | The Agency shall review, and may revise on an expedited | ||||||
7 | basis, the long-term renewable resources procurement plan | ||||||
8 | at least every 2 years, which shall be conducted in | ||||||
9 | conjunction with the procurement plan under Section | ||||||
10 | 16-111.5 of the Public Utilities Act to the extent | ||||||
11 | practicable to minimize administrative expense. The | ||||||
12 | long-term renewable resources procurement plans shall be | ||||||
13 | subject to review and approval by the Commission under | ||||||
14 | Section 16-111.5 of the Public Utilities Act. | ||||||
15 | (B) Subject to subparagraph (F) of this paragraph (1), | ||||||
16 | the long-term renewable resources procurement plan shall | ||||||
17 | include the goals for procurement of renewable energy | ||||||
18 | credits to meet at least the following overall | ||||||
19 | percentages: 13% by the 2017 delivery year; increasing by | ||||||
20 | at least 1.5% each delivery year thereafter to at least | ||||||
21 | 25% by the 2025 delivery year; and continuing at no less | ||||||
22 | than 25% for each delivery year thereafter. In the event | ||||||
23 | of a conflict between these goals and the new wind and new | ||||||
24 | photovoltaic procurement requirements described in items | ||||||
25 | (i) through (iii) of subparagraph (C) of this paragraph | ||||||
26 | (1), the long-term plan shall prioritize compliance with |
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1 | the new wind and new photovoltaic procurement requirements | ||||||
2 | described in items (i) through (iii) of subparagraph (C) | ||||||
3 | of this paragraph (1) over the annual percentage targets | ||||||
4 | described in this subparagraph (B). | ||||||
5 | For the delivery year beginning June 1, 2017, the | ||||||
6 | procurement plan shall include cost-effective renewable | ||||||
7 | energy resources equal to at least 13% of each utility's | ||||||
8 | load for eligible retail customers and 13% of the | ||||||
9 | applicable portion of each utility's load for retail | ||||||
10 | customers who are not eligible retail customers, which | ||||||
11 | applicable portion shall equal 50% of the utility's load | ||||||
12 | for retail customers who are not eligible retail customers | ||||||
13 | on February 28, 2017. | ||||||
14 | For the delivery year beginning June 1, 2018, the | ||||||
15 | procurement plan shall include cost-effective renewable | ||||||
16 | energy resources equal to at least 14.5% of each utility's | ||||||
17 | load for eligible retail customers and 14.5% of the | ||||||
18 | applicable portion of each utility's load for retail | ||||||
19 | customers who are not eligible retail customers, which | ||||||
20 | applicable portion shall equal 75% of the utility's load | ||||||
21 | for retail customers who are not eligible retail customers | ||||||
22 | on February 28, 2017. | ||||||
23 | For the delivery year beginning June 1, 2019, and for | ||||||
24 | each year thereafter, the procurement plans shall include | ||||||
25 | cost-effective renewable energy resources equal to a | ||||||
26 | minimum percentage of each utility's load for all retail |
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1 | customers as follows: 16% by June 1, 2019; increasing by | ||||||
2 | 1.5% each year thereafter to 25% by June 1, 2025; and 25% | ||||||
3 | by June 1, 2026 and each year thereafter. | ||||||
4 | For each delivery year, the Agency shall first | ||||||
5 | recognize each utility's obligations for that delivery | ||||||
6 | year under existing contracts. Any renewable energy | ||||||
7 | credits under existing contracts, including renewable | ||||||
8 | energy credits as part of renewable energy resources, | ||||||
9 | shall be used to meet the goals set forth in this | ||||||
10 | subsection (c) for the delivery year. | ||||||
11 | (C) Of the renewable energy credits procured under | ||||||
12 | this subsection (c), at least 75% shall come from wind and | ||||||
13 | photovoltaic projects. The long-term renewable resources | ||||||
14 | procurement plan described in subparagraph (A) of this | ||||||
15 | paragraph (1) shall include the procurement of renewable | ||||||
16 | energy credits in amounts equal to at least the following: | ||||||
17 | (i) By the end of the 2020 delivery year: | ||||||
18 | At least 2,000,000 renewable energy credits | ||||||
19 | for each delivery year shall come from new wind | ||||||
20 | projects; and | ||||||
21 | At least 2,000,000 renewable energy credits | ||||||
22 | for each delivery year shall come from new | ||||||
23 | photovoltaic projects; of that amount, to the | ||||||
24 | extent possible, the Agency shall procure: at | ||||||
25 | least 50% from solar photovoltaic projects using | ||||||
26 | the program outlined in subparagraph (K) of this |
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1 | paragraph (1) from distributed renewable energy | ||||||
2 | generation devices or community renewable | ||||||
3 | generation projects; at least 40% from | ||||||
4 | utility-scale solar projects; at least 2% from | ||||||
5 | brownfield site photovoltaic projects that are not | ||||||
6 | community renewable generation projects; and the | ||||||
7 | remainder shall be determined through the | ||||||
8 | long-term planning process described in | ||||||
9 | subparagraph (A) of this paragraph (1). | ||||||
10 | (ii) By the end of the 2025 delivery year: | ||||||
11 | At least 3,000,000 renewable energy credits | ||||||
12 | for each delivery year shall come from new wind | ||||||
13 | projects; and | ||||||
14 | At least 3,000,000 renewable energy credits | ||||||
15 | for each delivery year shall come from new | ||||||
16 | photovoltaic projects; of that amount, to the | ||||||
17 | extent possible, the Agency shall procure: at | ||||||
18 | least 50% from solar photovoltaic projects using | ||||||
19 | the program outlined in subparagraph (K) of this | ||||||
20 | paragraph (1) from distributed renewable energy | ||||||
21 | devices or community renewable generation | ||||||
22 | projects; at least 40% from utility-scale solar | ||||||
23 | projects; at least 2% from brownfield site | ||||||
24 | photovoltaic projects that are not community | ||||||
25 | renewable generation projects; and the remainder | ||||||
26 | shall be determined through the long-term planning |
| |||||||
| |||||||
1 | process described in subparagraph (A) of this | ||||||
2 | paragraph (1). | ||||||
3 | (iii) By the end of the 2030 delivery year: | ||||||
4 | At least 4,000,000 renewable energy credits | ||||||
5 | for each delivery year shall come from new wind | ||||||
6 | projects; and | ||||||
7 | At least 4,000,000 renewable energy credits | ||||||
8 | for each delivery year shall come from new | ||||||
9 | photovoltaic projects; of that amount, to the | ||||||
10 | extent possible, the Agency shall procure: at | ||||||
11 | least 50% from solar photovoltaic projects using | ||||||
12 | the program outlined in subparagraph (K) of this | ||||||
13 | paragraph (1) from distributed renewable energy | ||||||
14 | devices or community renewable generation | ||||||
15 | projects; at least 40% from utility-scale solar | ||||||
16 | projects; at least 2% from brownfield site | ||||||
17 | photovoltaic projects that are not community | ||||||
18 | renewable generation projects; and the remainder | ||||||
19 | shall be determined through the long-term planning | ||||||
20 | process described in subparagraph (A) of this | ||||||
21 | paragraph (1). | ||||||
22 | For purposes of this Section: | ||||||
23 | "New wind projects" means wind renewable | ||||||
24 | energy facilities that are energized after June 1, | ||||||
25 | 2017 for the delivery year commencing June 1, 2017 | ||||||
26 | or within 3 years after the date the Commission |
| |||||||
| |||||||
1 | approves contracts for subsequent delivery years. | ||||||
2 | "New photovoltaic projects" means photovoltaic | ||||||
3 | renewable energy facilities that are energized | ||||||
4 | after June 1, 2017. Photovoltaic projects | ||||||
5 | developed under Section 1-56 of this Act shall not | ||||||
6 | apply towards the new photovoltaic project | ||||||
7 | requirements in this subparagraph (C). | ||||||
8 | (D) Renewable energy credits shall be cost effective. | ||||||
9 | For purposes of this subsection (c), "cost effective" | ||||||
10 | means that the costs of procuring renewable energy | ||||||
11 | resources do not cause the limit stated in subparagraph | ||||||
12 | (E) of this paragraph (1) to be exceeded and, for | ||||||
13 | renewable energy credits procured through a competitive | ||||||
14 | procurement event, do not exceed benchmarks based on | ||||||
15 | market prices for like products in the region. For | ||||||
16 | purposes of this subsection (c), "like products" means | ||||||
17 | contracts for renewable energy credits from the same or | ||||||
18 | substantially similar technology, same or substantially | ||||||
19 | similar vintage (new or existing), the same or | ||||||
20 | substantially similar quantity, and the same or | ||||||
21 | substantially similar contract length and structure. | ||||||
22 | Benchmarks shall be developed by the procurement | ||||||
23 | administrator, in consultation with the Commission staff, | ||||||
24 | Agency staff, and the procurement monitor and shall be | ||||||
25 | subject to Commission review and approval. If price | ||||||
26 | benchmarks for like products in the region are not |
| |||||||
| |||||||
1 | available, the procurement administrator shall establish | ||||||
2 | price benchmarks based on publicly available data on | ||||||
3 | regional technology costs and expected current and future | ||||||
4 | regional energy prices. The benchmarks in this Section | ||||||
5 | shall not be used to curtail or otherwise reduce | ||||||
6 | contractual obligations entered into by or through the | ||||||
7 | Agency prior to June 1, 2017 (the effective date of Public | ||||||
8 | Act 99-906). | ||||||
9 | (E) For purposes of this subsection (c), the required | ||||||
10 | procurement of cost-effective renewable energy resources | ||||||
11 | for a particular year commencing prior to June 1, 2017 | ||||||
12 | shall be measured as a percentage of the actual amount of | ||||||
13 | electricity (megawatt-hours) supplied by the electric | ||||||
14 | utility to eligible retail customers in the delivery year | ||||||
15 | ending immediately prior to the procurement, and, for | ||||||
16 | delivery years commencing on and after June 1, 2017, the | ||||||
17 | required procurement of cost-effective renewable energy | ||||||
18 | resources for a particular year shall be measured as a | ||||||
19 | percentage of the actual amount of electricity | ||||||
20 | (megawatt-hours) delivered by the electric utility in the | ||||||
21 | delivery year ending immediately prior to the procurement, | ||||||
22 | to all retail customers in its service territory. For | ||||||
23 | purposes of this subsection (c), the amount paid per | ||||||
24 | kilowatthour means the total amount paid for electric | ||||||
25 | service expressed on a per kilowatthour basis. For | ||||||
26 | purposes of this subsection (c), the total amount paid for |
| |||||||
| |||||||
1 | electric service includes without limitation amounts paid | ||||||
2 | for supply, transmission, distribution, surcharges, and | ||||||
3 | add-on taxes. | ||||||
4 | Notwithstanding the requirements of this subsection | ||||||
5 | (c), the total of renewable energy resources procured | ||||||
6 | under the procurement plan for any single year shall be | ||||||
7 | subject to the limitations of this subparagraph (E). Such | ||||||
8 | procurement shall be reduced for all retail customers | ||||||
9 | based on the amount necessary to limit the annual | ||||||
10 | estimated average net increase due to the costs of these | ||||||
11 | resources included in the amounts paid by eligible retail | ||||||
12 | customers in connection with electric service to no more | ||||||
13 | than the greater of 2.015% of the amount paid per | ||||||
14 | kilowatthour by those customers during the year ending May | ||||||
15 | 31, 2007 or the incremental amount per kilowatthour paid | ||||||
16 | for these resources in 2011. To arrive at a maximum dollar | ||||||
17 | amount of renewable energy resources to be procured for | ||||||
18 | the particular delivery year, the resulting per | ||||||
19 | kilowatthour amount shall be applied to the actual amount | ||||||
20 | of kilowatthours of electricity delivered, or applicable | ||||||
21 | portion of such amount as specified in paragraph (1) of | ||||||
22 | this subsection (c), as applicable, by the electric | ||||||
23 | utility in the delivery year immediately prior to the | ||||||
24 | procurement to all retail customers in its service | ||||||
25 | territory. The calculations required by this subparagraph | ||||||
26 | (E) shall be made only once for each delivery year at the |
| |||||||
| |||||||
1 | time that the renewable energy resources are procured. | ||||||
2 | Once the determination as to the amount of renewable | ||||||
3 | energy resources to procure is made based on the | ||||||
4 | calculations set forth in this subparagraph (E) and the | ||||||
5 | contracts procuring those amounts are executed, no | ||||||
6 | subsequent rate impact determinations shall be made and no | ||||||
7 | adjustments to those contract amounts shall be allowed. | ||||||
8 | All costs incurred under such contracts shall be fully | ||||||
9 | recoverable by the electric utility as provided in this | ||||||
10 | Section. | ||||||
11 | (F) If the limitation on the amount of renewable | ||||||
12 | energy resources procured in subparagraph (E) of this | ||||||
13 | paragraph (1) prevents the Agency from meeting all of the | ||||||
14 | goals in this subsection (c), the Agency's long-term plan | ||||||
15 | shall prioritize compliance with the requirements of this | ||||||
16 | subsection (c) regarding renewable energy credits in the | ||||||
17 | following order: | ||||||
18 | (i) renewable energy credits under existing | ||||||
19 | contractual obligations; | ||||||
20 | (i-5) funding for the Illinois Solar for All | ||||||
21 | Program, as described in subparagraph (O) of this | ||||||
22 | paragraph (1); | ||||||
23 | (ii) renewable energy credits necessary to comply | ||||||
24 | with the new wind and new photovoltaic procurement | ||||||
25 | requirements described in items (i) through (iii) of | ||||||
26 | subparagraph (C) of this paragraph (1); and |
| |||||||
| |||||||
1 | (iii) renewable energy credits necessary to meet | ||||||
2 | the remaining requirements of this subsection (c). | ||||||
3 | (G) The following provisions shall apply to the | ||||||
4 | Agency's procurement of renewable energy credits under | ||||||
5 | this subsection (c): | ||||||
6 | (i) Notwithstanding whether a long-term renewable | ||||||
7 | resources procurement plan has been approved, the | ||||||
8 | Agency shall conduct an initial forward procurement | ||||||
9 | for renewable energy credits from new utility-scale | ||||||
10 | wind projects within 160 days after June 1, 2017 (the | ||||||
11 | effective date of Public Act 99-906). For the purposes | ||||||
12 | of this initial forward procurement, the Agency shall | ||||||
13 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
14 | renewable energy credits delivered annually from new | ||||||
15 | utility-scale wind projects to begin delivery on June | ||||||
16 | 1, 2019, if available, but not later than June 1, 2021, | ||||||
17 | unless the project has delays in the establishment of | ||||||
18 | an operating interconnection with the applicable | ||||||
19 | transmission or distribution system as a result of the | ||||||
20 | actions or inactions of the transmission or | ||||||
21 | distribution provider, or other causes for force | ||||||
22 | majeure as outlined in the procurement contract, in | ||||||
23 | which case, not later than June 1, 2022. Payments to | ||||||
24 | suppliers of renewable energy credits shall commence | ||||||
25 | upon delivery. Renewable energy credits procured under | ||||||
26 | this initial procurement shall be included in the |
| |||||||
| |||||||
1 | Agency's long-term plan and shall apply to all | ||||||
2 | renewable energy goals in this subsection (c). | ||||||
3 | (ii) Notwithstanding whether a long-term renewable | ||||||
4 | resources procurement plan has been approved, the | ||||||
5 | Agency shall conduct an initial forward procurement | ||||||
6 | for renewable energy credits from new utility-scale | ||||||
7 | solar projects and brownfield site photovoltaic | ||||||
8 | projects within one year after June 1, 2017 (the | ||||||
9 | effective date of Public Act 99-906). For the purposes | ||||||
10 | of this initial forward procurement, the Agency shall | ||||||
11 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
12 | renewable energy credits delivered annually from new | ||||||
13 | utility-scale solar projects and brownfield site | ||||||
14 | photovoltaic projects to begin delivery on June 1, | ||||||
15 | 2019, if available, but not later than June 1, 2021, | ||||||
16 | unless the project has delays in the establishment of | ||||||
17 | an operating interconnection with the applicable | ||||||
18 | transmission or distribution system as a result of the | ||||||
19 | actions or inactions of the transmission or | ||||||
20 | distribution provider, or other causes for force | ||||||
21 | majeure as outlined in the procurement contract, in | ||||||
22 | which case, not later than June 1, 2022. The Agency may | ||||||
23 | structure this initial procurement in one or more | ||||||
24 | discrete procurement events. Payments to suppliers of | ||||||
25 | renewable energy credits shall commence upon delivery. | ||||||
26 | Renewable energy credits procured under this initial |
| |||||||
| |||||||
1 | procurement shall be included in the Agency's | ||||||
2 | long-term plan and shall apply to all renewable energy | ||||||
3 | goals in this subsection (c). | ||||||
4 | (iii) Subsequent forward procurements for | ||||||
5 | utility-scale wind projects shall solicit at least | ||||||
6 | 1,000,000 renewable energy credits delivered annually | ||||||
7 | per procurement event and shall be planned, scheduled, | ||||||
8 | and designed such that the cumulative amount of | ||||||
9 | renewable energy credits delivered from all new wind | ||||||
10 | projects in each delivery year shall not exceed the | ||||||
11 | Agency's projection of the cumulative amount of | ||||||
12 | renewable energy credits that will be delivered from | ||||||
13 | all new photovoltaic projects, including utility-scale | ||||||
14 | and distributed photovoltaic devices, in the same | ||||||
15 | delivery year at the time scheduled for wind contract | ||||||
16 | delivery. | ||||||
17 | (iv) If, at any time after the time set for | ||||||
18 | delivery of renewable energy credits pursuant to the | ||||||
19 | initial procurements in items (i) and (ii) of this | ||||||
20 | subparagraph (G), the cumulative amount of renewable | ||||||
21 | energy credits projected to be delivered from all new | ||||||
22 | wind projects in a given delivery year exceeds the | ||||||
23 | cumulative amount of renewable energy credits | ||||||
24 | projected to be delivered from all new photovoltaic | ||||||
25 | projects in that delivery year by 200,000 or more | ||||||
26 | renewable energy credits, then the Agency shall within |
| |||||||
| |||||||
1 | 60 days adjust the procurement programs in the | ||||||
2 | long-term renewable resources procurement plan to | ||||||
3 | ensure that the projected cumulative amount of | ||||||
4 | renewable energy credits to be delivered from all new | ||||||
5 | wind projects does not exceed the projected cumulative | ||||||
6 | amount of renewable energy credits to be delivered | ||||||
7 | from all new photovoltaic projects by 200,000 or more | ||||||
8 | renewable energy credits, provided that nothing in | ||||||
9 | this Section shall preclude the projected cumulative | ||||||
10 | amount of renewable energy credits to be delivered | ||||||
11 | from all new photovoltaic projects from exceeding the | ||||||
12 | projected cumulative amount of renewable energy | ||||||
13 | credits to be delivered from all new wind projects in | ||||||
14 | each delivery year and provided further that nothing | ||||||
15 | in this item (iv) shall require the curtailment of an | ||||||
16 | executed contract. The Agency shall update, on a | ||||||
17 | quarterly basis, its projection of the renewable | ||||||
18 | energy credits to be delivered from all projects in | ||||||
19 | each delivery year. Notwithstanding anything to the | ||||||
20 | contrary, the Agency may adjust the timing of | ||||||
21 | procurement events conducted under this subparagraph | ||||||
22 | (G). The long-term renewable resources procurement | ||||||
23 | plan shall set forth the process by which the | ||||||
24 | adjustments may be made. | ||||||
25 | (v) All procurements under this subparagraph (G) | ||||||
26 | shall comply with the geographic requirements in |
| |||||||
| |||||||
1 | subparagraph (I) of this paragraph (1) and shall | ||||||
2 | follow the procurement processes and procedures | ||||||
3 | described in this Section and Section 16-111.5 of the | ||||||
4 | Public Utilities Act to the extent practicable, and | ||||||
5 | these processes and procedures may be expedited to | ||||||
6 | accommodate the schedule established by this | ||||||
7 | subparagraph (G). | ||||||
8 | (H) The procurement of renewable energy resources for | ||||||
9 | a given delivery year shall be reduced as described in | ||||||
10 | this subparagraph (H) if an alternative retail electric | ||||||
11 | supplier meets the requirements described in this | ||||||
12 | subparagraph (H). | ||||||
13 | (i) Within 45 days after June 1, 2017 (the | ||||||
14 | effective date of Public Act 99-906), an alternative | ||||||
15 | retail electric supplier or its successor shall submit | ||||||
16 | an informational filing to the Illinois Commerce | ||||||
17 | Commission certifying that, as of December 31, 2015, | ||||||
18 | the alternative retail electric supplier owned one or | ||||||
19 | more electric generating facilities that generates | ||||||
20 | renewable energy resources as defined in Section 1-10 | ||||||
21 | of this Act, provided that such facilities are not | ||||||
22 | powered by wind or photovoltaics, and the facilities | ||||||
23 | generate one renewable energy credit for each | ||||||
24 | megawatthour of energy produced from the facility. | ||||||
25 | The informational filing shall identify each | ||||||
26 | facility that was eligible to satisfy the alternative |
| |||||||
| |||||||
1 | retail electric supplier's obligations under Section | ||||||
2 | 16-115D of the Public Utilities Act as described in | ||||||
3 | this item (i). | ||||||
4 | (ii) For a given delivery year, the alternative | ||||||
5 | retail electric supplier may elect to supply its | ||||||
6 | retail customers with renewable energy credits from | ||||||
7 | the facility or facilities described in item (i) of | ||||||
8 | this subparagraph (H) that continue to be owned by the | ||||||
9 | alternative retail electric supplier. | ||||||
10 | (iii) The alternative retail electric supplier | ||||||
11 | shall notify the Agency and the applicable utility, no | ||||||
12 | later than February 28 of the year preceding the | ||||||
13 | applicable delivery year or 15 days after June 1, 2017 | ||||||
14 | (the effective date of Public Act 99-906), whichever | ||||||
15 | is later, of its election under item (ii) of this | ||||||
16 | subparagraph (H) to supply renewable energy credits to | ||||||
17 | retail customers of the utility. Such election shall | ||||||
18 | identify the amount of renewable energy credits to be | ||||||
19 | supplied by the alternative retail electric supplier | ||||||
20 | to the utility's retail customers and the source of | ||||||
21 | the renewable energy credits identified in the | ||||||
22 | informational filing as described in item (i) of this | ||||||
23 | subparagraph (H), subject to the following | ||||||
24 | limitations: | ||||||
25 | For the delivery year beginning June 1, 2018, | ||||||
26 | the maximum amount of renewable energy credits to |
| |||||||
| |||||||
1 | be supplied by an alternative retail electric | ||||||
2 | supplier under this subparagraph (H) shall be 68% | ||||||
3 | multiplied by 25% multiplied by 14.5% multiplied | ||||||
4 | by the amount of metered electricity | ||||||
5 | (megawatt-hours) delivered by the alternative | ||||||
6 | retail electric supplier to Illinois retail | ||||||
7 | customers during the delivery year ending May 31, | ||||||
8 | 2016. | ||||||
9 | For delivery years beginning June 1, 2019 and | ||||||
10 | each year thereafter, the maximum amount of | ||||||
11 | renewable energy credits to be supplied by an | ||||||
12 | alternative retail electric supplier under this | ||||||
13 | subparagraph (H) shall be 68% multiplied by 50% | ||||||
14 | multiplied by 16% multiplied by the amount of | ||||||
15 | metered electricity (megawatt-hours) delivered by | ||||||
16 | the alternative retail electric supplier to | ||||||
17 | Illinois retail customers during the delivery year | ||||||
18 | ending May 31, 2016, provided that the 16% value | ||||||
19 | shall increase by 1.5% each delivery year | ||||||
20 | thereafter to 25% by the delivery year beginning | ||||||
21 | June 1, 2025, and thereafter the 25% value shall | ||||||
22 | apply to each delivery year. | ||||||
23 | For each delivery year, the total amount of | ||||||
24 | renewable energy credits supplied by all alternative | ||||||
25 | retail electric suppliers under this subparagraph (H) | ||||||
26 | shall not exceed 9% of the Illinois target renewable |
| |||||||
| |||||||
1 | energy credit quantity. The Illinois target renewable | ||||||
2 | energy credit quantity for the delivery year beginning | ||||||
3 | June 1, 2018 is 14.5% multiplied by the total amount of | ||||||
4 | metered electricity (megawatt-hours) delivered in the | ||||||
5 | delivery year immediately preceding that delivery | ||||||
6 | year, provided that the 14.5% shall increase by 1.5% | ||||||
7 | each delivery year thereafter to 25% by the delivery | ||||||
8 | year beginning June 1, 2025, and thereafter the 25% | ||||||
9 | value shall apply to each delivery year. | ||||||
10 | If the requirements set forth in items (i) through | ||||||
11 | (iii) of this subparagraph (H) are met, the charges | ||||||
12 | that would otherwise be applicable to the retail | ||||||
13 | customers of the alternative retail electric supplier | ||||||
14 | under paragraph (6) of this subsection (c) for the | ||||||
15 | applicable delivery year shall be reduced by the ratio | ||||||
16 | of the quantity of renewable energy credits supplied | ||||||
17 | by the alternative retail electric supplier compared | ||||||
18 | to that supplier's target renewable energy credit | ||||||
19 | quantity. The supplier's target renewable energy | ||||||
20 | credit quantity for the delivery year beginning June | ||||||
21 | 1, 2018 is 14.5% multiplied by the total amount of | ||||||
22 | metered electricity (megawatt-hours) delivered by the | ||||||
23 | alternative retail supplier in that delivery year, | ||||||
24 | provided that the 14.5% shall increase by 1.5% each | ||||||
25 | delivery year thereafter to 25% by the delivery year | ||||||
26 | beginning June 1, 2025, and thereafter the 25% value |
| |||||||
| |||||||
1 | shall apply to each delivery year. | ||||||
2 | On or before April 1 of each year, the Agency shall | ||||||
3 | annually publish a report on its website that | ||||||
4 | identifies the aggregate amount of renewable energy | ||||||
5 | credits supplied by alternative retail electric | ||||||
6 | suppliers under this subparagraph (H). | ||||||
7 | (I) The Agency shall design its long-term renewable | ||||||
8 | energy procurement plan to maximize the State's interest | ||||||
9 | in the health, safety, and welfare of its residents, | ||||||
10 | including but not limited to minimizing sulfur dioxide, | ||||||
11 | nitrogen oxide, particulate matter and other pollution | ||||||
12 | that adversely affects public health in this State, | ||||||
13 | increasing fuel and resource diversity in this State, | ||||||
14 | enhancing the reliability and resiliency of the | ||||||
15 | electricity distribution system in this State, meeting | ||||||
16 | goals to limit carbon dioxide emissions under federal or | ||||||
17 | State law, and contributing to a cleaner and healthier | ||||||
18 | environment for the citizens of this State. In order to | ||||||
19 | further these legislative purposes, renewable energy | ||||||
20 | credits shall be eligible to be counted toward the | ||||||
21 | renewable energy requirements of this subsection (c) if | ||||||
22 | they are generated from facilities located in this State. | ||||||
23 | The Agency may qualify renewable energy credits from | ||||||
24 | facilities located in states adjacent to Illinois if the | ||||||
25 | generator demonstrates and the Agency determines that the | ||||||
26 | operation of such facility or facilities will help promote |
| |||||||
| |||||||
1 | the State's interest in the health, safety, and welfare of | ||||||
2 | its residents based on the public interest criteria | ||||||
3 | described above. To ensure that the public interest | ||||||
4 | criteria are applied to the procurement and given full | ||||||
5 | effect, the Agency's long-term procurement plan shall | ||||||
6 | describe in detail how each public interest factor shall | ||||||
7 | be considered and weighted for facilities located in | ||||||
8 | states adjacent to Illinois. | ||||||
9 | (J) In order to promote the competitive development of | ||||||
10 | renewable energy resources in furtherance of the State's | ||||||
11 | interest in the health, safety, and welfare of its | ||||||
12 | residents, renewable energy credits shall not be eligible | ||||||
13 | to be counted toward the renewable energy requirements of | ||||||
14 | this subsection (c) if they are sourced from a generating | ||||||
15 | unit whose costs were being recovered through rates | ||||||
16 | regulated by this State or any other state or states on or | ||||||
17 | after January 1, 2017. Each contract executed to purchase | ||||||
18 | renewable energy credits under this subsection (c) shall | ||||||
19 | provide for the contract's termination if the costs of the | ||||||
20 | generating unit supplying the renewable energy credits | ||||||
21 | subsequently begin to be recovered through rates regulated | ||||||
22 | by this State or any other state or states; and each | ||||||
23 | contract shall further provide that, in that event, the | ||||||
24 | supplier of the credits must return 110% of all payments | ||||||
25 | received under the contract. Amounts returned under the | ||||||
26 | requirements of this subparagraph (J) shall be retained by |
| |||||||
| |||||||
1 | the utility and all of these amounts shall be used for the | ||||||
2 | procurement of additional renewable energy credits from | ||||||
3 | new wind or new photovoltaic resources as defined in this | ||||||
4 | subsection (c). The long-term plan shall provide that | ||||||
5 | these renewable energy credits shall be procured in the | ||||||
6 | next procurement event. | ||||||
7 | Notwithstanding the limitations of this subparagraph | ||||||
8 | (J), renewable energy credits sourced from generating | ||||||
9 | units that are constructed, purchased, owned, or leased by | ||||||
10 | an electric utility as part of an approved project, | ||||||
11 | program, or pilot under Section 1-56 of this Act shall be | ||||||
12 | eligible to be counted toward the renewable energy | ||||||
13 | requirements of this subsection (c), regardless of how the | ||||||
14 | costs of these units are recovered. | ||||||
15 | (K) The long-term renewable resources procurement plan | ||||||
16 | developed by the Agency in accordance with subparagraph | ||||||
17 | (A) of this paragraph (1) shall include an Adjustable | ||||||
18 | Block program for the procurement of renewable energy | ||||||
19 | credits from new photovoltaic projects that are | ||||||
20 | distributed renewable energy generation devices or new | ||||||
21 | photovoltaic community renewable generation projects. The | ||||||
22 | Adjustable Block program shall be designed to provide a | ||||||
23 | transparent schedule of prices and quantities to enable | ||||||
24 | the photovoltaic market to scale up and for renewable | ||||||
25 | energy credit prices to adjust at a predictable rate over | ||||||
26 | time. The prices set by the Adjustable Block program can |
| |||||||
| |||||||
1 | be reflected as a set value or as the product of a formula. | ||||||
2 | The Adjustable Block program shall include for each | ||||||
3 | category of eligible projects: a schedule of standard | ||||||
4 | block purchase prices to be offered; a series of steps, | ||||||
5 | with associated nameplate capacity and purchase prices | ||||||
6 | that adjust from step to step; and automatic opening of | ||||||
7 | the next step as soon as the nameplate capacity and | ||||||
8 | available purchase prices for an open step are fully | ||||||
9 | committed or reserved. Only projects energized on or after | ||||||
10 | June 1, 2017 shall be eligible for the Adjustable Block | ||||||
11 | program. For each block group the Agency shall determine | ||||||
12 | the number of blocks, the amount of generation capacity in | ||||||
13 | each block, and the purchase price for each block, | ||||||
14 | provided that the purchase price provided and the total | ||||||
15 | amount of generation in all blocks for all block groups | ||||||
16 | shall be sufficient to meet the goals in this subsection | ||||||
17 | (c). The Agency may periodically review its prior | ||||||
18 | decisions establishing the number of blocks, the amount of | ||||||
19 | generation capacity in each block, and the purchase price | ||||||
20 | for each block, and may propose, on an expedited basis, | ||||||
21 | changes to these previously set values, including but not | ||||||
22 | limited to redistributing these amounts and the available | ||||||
23 | funds as necessary and appropriate, subject to Commission | ||||||
24 | approval as part of the periodic plan revision process | ||||||
25 | described in Section 16-111.5 of the Public Utilities Act. | ||||||
26 | The Agency may define different block sizes, purchase |
| |||||||
| |||||||
1 | prices, or other distinct terms and conditions for | ||||||
2 | projects located in different utility service territories | ||||||
3 | if the Agency deems it necessary to meet the goals in this | ||||||
4 | subsection (c). | ||||||
5 | The Adjustable Block program shall include at least | ||||||
6 | the following block groups in at least the following | ||||||
7 | amounts, which may be adjusted upon review by the Agency | ||||||
8 | and approval by the Commission as described in this | ||||||
9 | subparagraph (K): | ||||||
10 | (i) At least 25% from distributed renewable energy | ||||||
11 | generation devices with a nameplate capacity of no | ||||||
12 | more than 10 kilowatts. | ||||||
13 | (ii) At least 25% from distributed renewable | ||||||
14 | energy generation devices with a nameplate capacity of | ||||||
15 | more than 10 kilowatts and no more than 2,000 | ||||||
16 | kilowatts. The Agency may create sub-categories within | ||||||
17 | this category to account for the differences between | ||||||
18 | projects for small commercial customers, large | ||||||
19 | commercial customers, and public or non-profit | ||||||
20 | customers. | ||||||
21 | (iii) At least 25% from photovoltaic community | ||||||
22 | renewable generation projects. | ||||||
23 | (iv) The remaining 25% shall be allocated as | ||||||
24 | specified by the Agency in the long-term renewable | ||||||
25 | resources procurement plan. | ||||||
26 | The Adjustable Block program shall be designed to |
| |||||||
| |||||||
1 | ensure that renewable energy credits are procured from | ||||||
2 | photovoltaic distributed renewable energy generation | ||||||
3 | devices and new photovoltaic community renewable energy | ||||||
4 | generation projects in diverse locations and are not | ||||||
5 | concentrated in a few geographic areas. | ||||||
6 | (L) The procurement of photovoltaic renewable energy | ||||||
7 | credits under items (i) through (iv) of subparagraph (K) | ||||||
8 | of this paragraph (1) shall be subject to the following | ||||||
9 | contract and payment terms: | ||||||
10 | (i) The Agency shall procure contracts of at least | ||||||
11 | 15 years in length. | ||||||
12 | (ii) For those renewable energy credits that | ||||||
13 | qualify and are procured under item (i) of | ||||||
14 | subparagraph (K) of this paragraph (1), the renewable | ||||||
15 | energy credit purchase price shall be paid in full by | ||||||
16 | the contracting utilities at the time that the | ||||||
17 | facility producing the renewable energy credits is | ||||||
18 | interconnected at the distribution system level of the | ||||||
19 | utility and energized. The electric utility shall | ||||||
20 | receive and retire all renewable energy credits | ||||||
21 | generated by the project for the first 15 years of | ||||||
22 | operation. | ||||||
23 | (iii) For those renewable energy credits that | ||||||
24 | qualify and are procured under item (ii) and (iii) of | ||||||
25 | subparagraph (K) of this paragraph (1) and any | ||||||
26 | additional categories of distributed generation |
| |||||||
| |||||||
1 | included in the long-term renewable resources | ||||||
2 | procurement plan and approved by the Commission, 20 | ||||||
3 | percent of the renewable energy credit purchase price | ||||||
4 | shall be paid by the contracting utilities at the time | ||||||
5 | that the facility producing the renewable energy | ||||||
6 | credits is interconnected at the distribution system | ||||||
7 | level of the utility and energized. The remaining | ||||||
8 | portion shall be paid ratably over the subsequent | ||||||
9 | 4-year period. The electric utility shall receive and | ||||||
10 | retire all renewable energy credits generated by the | ||||||
11 | project for the first 15 years of operation. | ||||||
12 | (iv) Each contract shall include provisions to | ||||||
13 | ensure the delivery of the renewable energy credits | ||||||
14 | for the full term of the contract. | ||||||
15 | (v) The utility shall be the counterparty to the | ||||||
16 | contracts executed under this subparagraph (L) that | ||||||
17 | are approved by the Commission under the process | ||||||
18 | described in Section 16-111.5 of the Public Utilities | ||||||
19 | Act. No contract shall be executed for an amount that | ||||||
20 | is less than one renewable energy credit per year. | ||||||
21 | (vi) If, at any time, approved applications for | ||||||
22 | the Adjustable Block program exceed funds collected by | ||||||
23 | the electric utility or would cause the Agency to | ||||||
24 | exceed the limitation described in subparagraph (E) of | ||||||
25 | this paragraph (1) on the amount of renewable energy | ||||||
26 | resources that may be procured, then the Agency shall |
| |||||||
| |||||||
1 | consider future uncommitted funds to be reserved for | ||||||
2 | these contracts on a first-come, first-served basis, | ||||||
3 | with the delivery of renewable energy credits required | ||||||
4 | beginning at the time that the reserved funds become | ||||||
5 | available. | ||||||
6 | (vii) Nothing in this Section shall require the | ||||||
7 | utility to advance any payment or pay any amounts that | ||||||
8 | exceed the actual amount of revenues collected by the | ||||||
9 | utility under paragraph (6) of this subsection (c) and | ||||||
10 | subsection (k) of Section 16-108 of the Public | ||||||
11 | Utilities Act, and contracts executed under this | ||||||
12 | Section shall expressly incorporate this limitation. | ||||||
13 | (M) The Agency shall be authorized to retain one or | ||||||
14 | more experts or expert consulting firms to develop, | ||||||
15 | administer, implement, operate, and evaluate the | ||||||
16 | Adjustable Block program described in subparagraph (K) of | ||||||
17 | this paragraph (1), and the Agency shall retain the | ||||||
18 | consultant or consultants in the same manner, to the | ||||||
19 | extent practicable, as the Agency retains others to | ||||||
20 | administer provisions of this Act, including, but not | ||||||
21 | limited to, the procurement administrator. The selection | ||||||
22 | of experts and expert consulting firms and the procurement | ||||||
23 | process described in this subparagraph (M) are exempt from | ||||||
24 | the requirements of Section 20-10 of the Illinois | ||||||
25 | Procurement Code, under Section 20-10 of that Code. The | ||||||
26 | Agency shall strive to minimize administrative expenses in |
| |||||||
| |||||||
1 | the implementation of the Adjustable Block program. | ||||||
2 | The Agency and its consultant or consultants shall | ||||||
3 | monitor block activity, share program activity with | ||||||
4 | stakeholders and conduct regularly scheduled meetings to | ||||||
5 | discuss program activity and market conditions. If | ||||||
6 | necessary, the Agency may make prospective administrative | ||||||
7 | adjustments to the Adjustable Block program design, such | ||||||
8 | as redistributing available funds or making adjustments to | ||||||
9 | purchase prices as necessary to achieve the goals of this | ||||||
10 | subsection (c). Program modifications to any price, | ||||||
11 | capacity block, or other program element that do not | ||||||
12 | deviate from the Commission's approved value by more than | ||||||
13 | 25% shall take effect immediately and are not subject to | ||||||
14 | Commission review and approval. Program modifications to | ||||||
15 | any price, capacity block, or other program element that | ||||||
16 | deviate more than 25% from the Commission's approved value | ||||||
17 | must be approved by the Commission as a long-term plan | ||||||
18 | amendment under Section 16-111.5 of the Public Utilities | ||||||
19 | Act. The Agency shall consider stakeholder feedback when | ||||||
20 | making adjustments to the Adjustable Block design and | ||||||
21 | shall notify stakeholders in advance of any planned | ||||||
22 | changes. | ||||||
23 | (N) The long-term renewable resources procurement plan | ||||||
24 | required by this subsection (c) shall include a community | ||||||
25 | renewable generation program. The Agency shall establish | ||||||
26 | the terms, conditions, and program requirements for |
| |||||||
| |||||||
1 | community renewable generation projects with a goal to | ||||||
2 | expand renewable energy generating facility access to a | ||||||
3 | broader group of energy consumers, to ensure robust | ||||||
4 | participation opportunities for residential and small | ||||||
5 | commercial customers and those who cannot install | ||||||
6 | renewable energy on their own properties. Any plan | ||||||
7 | approved by the Commission shall allow subscriptions to | ||||||
8 | community renewable generation projects to be portable and | ||||||
9 | transferable. For purposes of this subparagraph (N), | ||||||
10 | "portable" means that subscriptions may be retained by the | ||||||
11 | subscriber even if the subscriber relocates or changes its | ||||||
12 | address within the same utility service territory; and | ||||||
13 | "transferable" means that a subscriber may assign or sell | ||||||
14 | subscriptions to another person within the same utility | ||||||
15 | service territory. | ||||||
16 | Electric utilities shall provide a monetary credit to | ||||||
17 | a subscriber's subsequent bill for service for the | ||||||
18 | proportional output of a community renewable generation | ||||||
19 | project attributable to that subscriber as specified in | ||||||
20 | Section 16-107.5 of the Public Utilities Act. | ||||||
21 | The Agency shall purchase renewable energy credits | ||||||
22 | from subscribed shares of photovoltaic community renewable | ||||||
23 | generation projects through the Adjustable Block program | ||||||
24 | described in subparagraph (K) of this paragraph (1) or | ||||||
25 | through the Illinois Solar for All Program described in | ||||||
26 | Section 1-56 of this Act. The electric utility shall |
| |||||||
| |||||||
1 | purchase any unsubscribed energy from community renewable | ||||||
2 | generation projects that are Qualifying Facilities ("QF") | ||||||
3 | under the electric utility's tariff for purchasing the | ||||||
4 | output from QFs under Public Utilities Regulatory Policies | ||||||
5 | Act of 1978. | ||||||
6 | The owners of and any subscribers to a community | ||||||
7 | renewable generation project shall not be considered | ||||||
8 | public utilities or alternative retail electricity | ||||||
9 | suppliers under the Public Utilities Act solely as a | ||||||
10 | result of their interest in or subscription to a community | ||||||
11 | renewable generation project and shall not be required to | ||||||
12 | become an alternative retail electric supplier by | ||||||
13 | participating in a community renewable generation project | ||||||
14 | with a public utility. | ||||||
15 | (O) For the delivery year beginning June 1, 2018, the | ||||||
16 | long-term renewable resources procurement plan required by | ||||||
17 | this subsection (c) shall provide for the Agency to | ||||||
18 | procure contracts to continue offering the Illinois Solar | ||||||
19 | for All Program described in subsection (b) of Section | ||||||
20 | 1-56 of this Act, and the contracts approved by the | ||||||
21 | Commission shall be executed by the utilities that are | ||||||
22 | subject to this subsection (c). The long-term renewable | ||||||
23 | resources procurement plan shall allocate 5% of the funds | ||||||
24 | available under the plan for the applicable delivery year, | ||||||
25 | or $10,000,000 per delivery year, whichever is greater, to | ||||||
26 | fund the programs, and the plan shall determine the amount |
| |||||||
| |||||||
1 | of funding to be apportioned to the programs identified in | ||||||
2 | subsection (b) of Section 1-56 of this Act; provided that | ||||||
3 | for the delivery years beginning June 1, 2017, June 1, | ||||||
4 | 2021, and June 1, 2025, the long-term renewable resources | ||||||
5 | procurement plan shall allocate 10% of the funds available | ||||||
6 | under the plan for the applicable delivery year, or | ||||||
7 | $20,000,000 per delivery year, whichever is greater, and | ||||||
8 | $10,000,000 of such funds in such year shall be used by an | ||||||
9 | electric utility that serves more than 3,000,000 retail | ||||||
10 | customers in the State to implement a Commission-approved | ||||||
11 | plan under Section 16-108.12 of the Public Utilities Act. | ||||||
12 | In making the determinations required under this | ||||||
13 | subparagraph (O), the Commission shall consider the | ||||||
14 | experience and performance under the programs and any | ||||||
15 | evaluation reports. The Commission shall also provide for | ||||||
16 | an independent evaluation of those programs on a periodic | ||||||
17 | basis that are funded under this subparagraph (O). | ||||||
18 | (2) (Blank). | ||||||
19 | (3) (Blank). | ||||||
20 | (4) The electric utility shall retire all renewable | ||||||
21 | energy credits used to comply with the standard. | ||||||
22 | (5) Beginning with the 2010 delivery year and ending | ||||||
23 | June 1, 2017, an electric utility subject to this | ||||||
24 | subsection (c) shall apply the lesser of the maximum | ||||||
25 | alternative compliance payment rate or the most recent | ||||||
26 | estimated alternative compliance payment rate for its |
| |||||||
| |||||||
1 | service territory for the corresponding compliance period, | ||||||
2 | established pursuant to subsection (d) of Section 16-115D | ||||||
3 | of the Public Utilities Act to its retail customers that | ||||||
4 | take service pursuant to the electric utility's hourly | ||||||
5 | pricing tariff or tariffs. The electric utility shall | ||||||
6 | retain all amounts collected as a result of the | ||||||
7 | application of the alternative compliance payment rate or | ||||||
8 | rates to such customers, and, beginning in 2011, the | ||||||
9 | utility shall include in the information provided under | ||||||
10 | item (1) of subsection (d) of Section 16-111.5 of the | ||||||
11 | Public Utilities Act the amounts collected under the | ||||||
12 | alternative compliance payment rate or rates for the prior | ||||||
13 | year ending May 31. Notwithstanding any limitation on the | ||||||
14 | procurement of renewable energy resources imposed by item | ||||||
15 | (2) of this subsection (c), the Agency shall increase its | ||||||
16 | spending on the purchase of renewable energy resources to | ||||||
17 | be procured by the electric utility for the next plan year | ||||||
18 | by an amount equal to the amounts collected by the utility | ||||||
19 | under the alternative compliance payment rate or rates in | ||||||
20 | the prior year ending May 31. | ||||||
21 | (6) The electric utility shall be entitled to recover | ||||||
22 | all of its costs associated with the procurement of | ||||||
23 | renewable energy credits under plans approved under this | ||||||
24 | Section and Section 16-111.5 of the Public Utilities Act. | ||||||
25 | These costs shall include associated reasonable expenses | ||||||
26 | for implementing the procurement programs, including, but |
| |||||||
| |||||||
1 | not limited to, the costs of administering and evaluating | ||||||
2 | the Adjustable Block program, through an automatic | ||||||
3 | adjustment clause tariff in accordance with subsection (k) | ||||||
4 | of Section 16-108 of the Public Utilities Act. | ||||||
5 | (7) Renewable energy credits procured from new | ||||||
6 | photovoltaic projects or new distributed renewable energy | ||||||
7 | generation devices under this Section after June 1, 2017 | ||||||
8 | (the effective date of Public Act 99-906) must be procured | ||||||
9 | from devices installed by a qualified person in compliance | ||||||
10 | with the requirements of Section 16-128A of the Public | ||||||
11 | Utilities Act and any rules or regulations adopted | ||||||
12 | thereunder. | ||||||
13 | In meeting the renewable energy requirements of this | ||||||
14 | subsection (c), to the extent feasible and consistent with | ||||||
15 | State and federal law, the renewable energy credit | ||||||
16 | procurements, Adjustable Block solar program, and | ||||||
17 | community renewable generation program shall provide | ||||||
18 | employment opportunities for all segments of the | ||||||
19 | population and workforce, including minority-owned and | ||||||
20 | female-owned business enterprises, and shall not, | ||||||
21 | consistent with State and federal law, discriminate based | ||||||
22 | on race or socioeconomic status. | ||||||
23 | (d) Clean coal portfolio standard. | ||||||
24 | (1) The procurement plans shall include electricity | ||||||
25 | generated using clean coal. Each utility shall enter into | ||||||
26 | one or more sourcing agreements with the initial clean |
| |||||||
| |||||||
1 | coal facility, as provided in paragraph (3) of this | ||||||
2 | subsection (d), covering electricity generated by the | ||||||
3 | initial clean coal facility representing at least 5% of | ||||||
4 | each utility's total supply to serve the load of eligible | ||||||
5 | retail customers in 2015 and each year thereafter, as | ||||||
6 | described in paragraph (3) of this subsection (d), subject | ||||||
7 | to the limits specified in paragraph (2) of this | ||||||
8 | subsection (d). It is the goal of the State that by January | ||||||
9 | 1, 2025, 25% of the electricity used in the State shall be | ||||||
10 | generated by cost-effective clean coal facilities. For | ||||||
11 | purposes of this subsection (d), "cost-effective" means | ||||||
12 | that the expenditures pursuant to such sourcing agreements | ||||||
13 | do not cause the limit stated in paragraph (2) of this | ||||||
14 | subsection (d) to be exceeded and do not exceed cost-based | ||||||
15 | benchmarks, which shall be developed to assess all | ||||||
16 | expenditures pursuant to such sourcing agreements covering | ||||||
17 | electricity generated by clean coal facilities, other than | ||||||
18 | the initial clean coal facility, by the procurement | ||||||
19 | administrator, in consultation with the Commission staff, | ||||||
20 | Agency staff, and the procurement monitor and shall be | ||||||
21 | subject to Commission review and approval. | ||||||
22 | A utility party to a sourcing agreement shall | ||||||
23 | immediately retire any emission credits that it receives | ||||||
24 | in connection with the electricity covered by such | ||||||
25 | agreement. | ||||||
26 | Utilities shall maintain adequate records documenting |
| |||||||
| |||||||
1 | the purchases under the sourcing agreement to comply with | ||||||
2 | this subsection (d) and shall file an accounting with the | ||||||
3 | load forecast that must be filed with the Agency by July 15 | ||||||
4 | of each year, in accordance with subsection (d) of Section | ||||||
5 | 16-111.5 of the Public Utilities Act. | ||||||
6 | A utility shall be deemed to have complied with the | ||||||
7 | clean coal portfolio standard specified in this subsection | ||||||
8 | (d) if the utility enters into a sourcing agreement as | ||||||
9 | required by this subsection (d). | ||||||
10 | (2) For purposes of this subsection (d), the required | ||||||
11 | execution of sourcing agreements with the initial clean | ||||||
12 | coal facility for a particular year shall be measured as a | ||||||
13 | percentage of the actual amount of electricity | ||||||
14 | (megawatt-hours) supplied by the electric utility to | ||||||
15 | eligible retail customers in the planning year ending | ||||||
16 | immediately prior to the agreement's execution. For | ||||||
17 | purposes of this subsection (d), the amount paid per | ||||||
18 | kilowatthour means the total amount paid for electric | ||||||
19 | service expressed on a per kilowatthour basis. For | ||||||
20 | purposes of this subsection (d), the total amount paid for | ||||||
21 | electric service includes without limitation amounts paid | ||||||
22 | for supply, transmission, distribution, surcharges and | ||||||
23 | add-on taxes. | ||||||
24 | Notwithstanding the requirements of this subsection | ||||||
25 | (d), the total amount paid under sourcing agreements with | ||||||
26 | clean coal facilities pursuant to the procurement plan for |
| |||||||
| |||||||
1 | any given year shall be reduced by an amount necessary to | ||||||
2 | limit the annual estimated average net increase due to the | ||||||
3 | costs of these resources included in the amounts paid by | ||||||
4 | eligible retail customers in connection with electric | ||||||
5 | service to: | ||||||
6 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
7 | per kilowatthour by those customers during the year | ||||||
8 | ending May 31, 2009; | ||||||
9 | (B) in 2011, the greater of an additional 0.5% of | ||||||
10 | the amount paid per kilowatthour by those customers | ||||||
11 | during the year ending May 31, 2010 or 1% of the amount | ||||||
12 | paid per kilowatthour by those customers during the | ||||||
13 | year ending May 31, 2009; | ||||||
14 | (C) in 2012, the greater of an additional 0.5% of | ||||||
15 | the amount paid per kilowatthour by those customers | ||||||
16 | during the year ending May 31, 2011 or 1.5% of the | ||||||
17 | amount paid per kilowatthour by those customers during | ||||||
18 | the year ending May 31, 2009; | ||||||
19 | (D) in 2013, the greater of an additional 0.5% of | ||||||
20 | the amount paid per kilowatthour by those customers | ||||||
21 | during the year ending May 31, 2012 or 2% of the amount | ||||||
22 | paid per kilowatthour by those customers during the | ||||||
23 | year ending May 31, 2009; and | ||||||
24 | (E) thereafter, the total amount paid under | ||||||
25 | sourcing agreements with clean coal facilities | ||||||
26 | pursuant to the procurement plan for any single year |
| |||||||
| |||||||
1 | shall be reduced by an amount necessary to limit the | ||||||
2 | estimated average net increase due to the cost of | ||||||
3 | these resources included in the amounts paid by | ||||||
4 | eligible retail customers in connection with electric | ||||||
5 | service to no more than the greater of (i) 2.015% of | ||||||
6 | the amount paid per kilowatthour by those customers | ||||||
7 | during the year ending May 31, 2009 or (ii) the | ||||||
8 | incremental amount per kilowatthour paid for these | ||||||
9 | resources in 2013. These requirements may be altered | ||||||
10 | only as provided by statute. | ||||||
11 | No later than June 30, 2015, the Commission shall | ||||||
12 | review the limitation on the total amount paid under | ||||||
13 | sourcing agreements, if any, with clean coal facilities | ||||||
14 | pursuant to this subsection (d) and report to the General | ||||||
15 | Assembly its findings as to whether that limitation unduly | ||||||
16 | constrains the amount of electricity generated by | ||||||
17 | cost-effective clean coal facilities that is covered by | ||||||
18 | sourcing agreements. | ||||||
19 | (3) Initial clean coal facility. In order to promote | ||||||
20 | development of clean coal facilities in Illinois, each | ||||||
21 | electric utility subject to this Section shall execute a | ||||||
22 | sourcing agreement to source electricity from a proposed | ||||||
23 | clean coal facility in Illinois (the "initial clean coal | ||||||
24 | facility") that will have a nameplate capacity of at least | ||||||
25 | 500 MW when commercial operation commences, that has a | ||||||
26 | final Clean Air Act permit on June 1, 2009 (the effective |
| |||||||
| |||||||
1 | date of Public Act 95-1027), and that will meet the | ||||||
2 | definition of clean coal facility in Section 1-10 of this | ||||||
3 | Act when commercial operation commences. The sourcing | ||||||
4 | agreements with this initial clean coal facility shall be | ||||||
5 | subject to both approval of the initial clean coal | ||||||
6 | facility by the General Assembly and satisfaction of the | ||||||
7 | requirements of paragraph (4) of this subsection (d) and | ||||||
8 | shall be executed within 90 days after any such approval | ||||||
9 | by the General Assembly. The Agency and the Commission | ||||||
10 | shall have authority to inspect all books and records | ||||||
11 | associated with the initial clean coal facility during the | ||||||
12 | term of such a sourcing agreement. A utility's sourcing | ||||||
13 | agreement for electricity produced by the initial clean | ||||||
14 | coal facility shall include: | ||||||
15 | (A) a formula contractual price (the "contract | ||||||
16 | price") approved pursuant to paragraph (4) of this | ||||||
17 | subsection (d), which shall: | ||||||
18 | (i) be determined using a cost of service | ||||||
19 | methodology employing either a level or deferred | ||||||
20 | capital recovery component, based on a capital | ||||||
21 | structure consisting of 45% equity and 55% debt, | ||||||
22 | and a return on equity as may be approved by the | ||||||
23 | Federal Energy Regulatory Commission, which in any | ||||||
24 | case may not exceed the lower of 11.5% or the rate | ||||||
25 | of return approved by the General Assembly | ||||||
26 | pursuant to paragraph (4) of this subsection (d); |
| |||||||
| |||||||
1 | and | ||||||
2 | (ii) provide that all miscellaneous net | ||||||
3 | revenue, including but not limited to net revenue | ||||||
4 | from the sale of emission allowances, if any, | ||||||
5 | substitute natural gas, if any, grants or other | ||||||
6 | support provided by the State of Illinois or the | ||||||
7 | United States Government, firm transmission | ||||||
8 | rights, if any, by-products produced by the | ||||||
9 | facility, energy or capacity derived from the | ||||||
10 | facility and not covered by a sourcing agreement | ||||||
11 | pursuant to paragraph (3) of this subsection (d) | ||||||
12 | or item (5) of subsection (d) of Section 16-115 of | ||||||
13 | the Public Utilities Act, whether generated from | ||||||
14 | the synthesis gas derived from coal, from SNG, or | ||||||
15 | from natural gas, shall be credited against the | ||||||
16 | revenue requirement for this initial clean coal | ||||||
17 | facility; | ||||||
18 | (B) power purchase provisions, which shall: | ||||||
19 | (i) provide that the utility party to such | ||||||
20 | sourcing agreement shall pay the contract price | ||||||
21 | for electricity delivered under such sourcing | ||||||
22 | agreement; | ||||||
23 | (ii) require delivery of electricity to the | ||||||
24 | regional transmission organization market of the | ||||||
25 | utility that is party to such sourcing agreement; | ||||||
26 | (iii) require the utility party to such |
| |||||||
| |||||||
1 | sourcing agreement to buy from the initial clean | ||||||
2 | coal facility in each hour an amount of energy | ||||||
3 | equal to all clean coal energy made available from | ||||||
4 | the initial clean coal facility during such hour | ||||||
5 | times a fraction, the numerator of which is such | ||||||
6 | utility's retail market sales of electricity | ||||||
7 | (expressed in kilowatthours sold) in the State | ||||||
8 | during the prior calendar month and the | ||||||
9 | denominator of which is the total retail market | ||||||
10 | sales of electricity (expressed in kilowatthours | ||||||
11 | sold) in the State by utilities during such prior | ||||||
12 | month and the sales of electricity (expressed in | ||||||
13 | kilowatthours sold) in the State by alternative | ||||||
14 | retail electric suppliers during such prior month | ||||||
15 | that are subject to the requirements of this | ||||||
16 | subsection (d) and paragraph (5) of subsection (d) | ||||||
17 | of Section 16-115 of the Public Utilities Act, | ||||||
18 | provided that the amount purchased by the utility | ||||||
19 | in any year will be limited by paragraph (2) of | ||||||
20 | this subsection (d); and | ||||||
21 | (iv) be considered pre-existing contracts in | ||||||
22 | such utility's procurement plans for eligible | ||||||
23 | retail customers; | ||||||
24 | (C) contract for differences provisions, which | ||||||
25 | shall: | ||||||
26 | (i) require the utility party to such sourcing |
| |||||||
| |||||||
1 | agreement to contract with the initial clean coal | ||||||
2 | facility in each hour with respect to an amount of | ||||||
3 | energy equal to all clean coal energy made | ||||||
4 | available from the initial clean coal facility | ||||||
5 | during such hour times a fraction, the numerator | ||||||
6 | of which is such utility's retail market sales of | ||||||
7 | electricity (expressed in kilowatthours sold) in | ||||||
8 | the utility's service territory in the State | ||||||
9 | during the prior calendar month and the | ||||||
10 | denominator of which is the total retail market | ||||||
11 | sales of electricity (expressed in kilowatthours | ||||||
12 | sold) in the State by utilities during such prior | ||||||
13 | month and the sales of electricity (expressed in | ||||||
14 | kilowatthours sold) in the State by alternative | ||||||
15 | retail electric suppliers during such prior month | ||||||
16 | that are subject to the requirements of this | ||||||
17 | subsection (d) and paragraph (5) of subsection (d) | ||||||
18 | of Section 16-115 of the Public Utilities Act, | ||||||
19 | provided that the amount paid by the utility in | ||||||
20 | any year will be limited by paragraph (2) of this | ||||||
21 | subsection (d); | ||||||
22 | (ii) provide that the utility's payment | ||||||
23 | obligation in respect of the quantity of | ||||||
24 | electricity determined pursuant to the preceding | ||||||
25 | clause (i) shall be limited to an amount equal to | ||||||
26 | (1) the difference between the contract price |
| |||||||
| |||||||
1 | determined pursuant to subparagraph (A) of | ||||||
2 | paragraph (3) of this subsection (d) and the | ||||||
3 | day-ahead price for electricity delivered to the | ||||||
4 | regional transmission organization market of the | ||||||
5 | utility that is party to such sourcing agreement | ||||||
6 | (or any successor delivery point at which such | ||||||
7 | utility's supply obligations are financially | ||||||
8 | settled on an hourly basis) (the "reference | ||||||
9 | price") on the day preceding the day on which the | ||||||
10 | electricity is delivered to the initial clean coal | ||||||
11 | facility busbar, multiplied by (2) the quantity of | ||||||
12 | electricity determined pursuant to the preceding | ||||||
13 | clause (i); and | ||||||
14 | (iii) not require the utility to take physical | ||||||
15 | delivery of the electricity produced by the | ||||||
16 | facility; | ||||||
17 | (D) general provisions, which shall: | ||||||
18 | (i) specify a term of no more than 30 years, | ||||||
19 | commencing on the commercial operation date of the | ||||||
20 | facility; | ||||||
21 | (ii) provide that utilities shall maintain | ||||||
22 | adequate records documenting purchases under the | ||||||
23 | sourcing agreements entered into to comply with | ||||||
24 | this subsection (d) and shall file an accounting | ||||||
25 | with the load forecast that must be filed with the | ||||||
26 | Agency by July 15 of each year, in accordance with |
| |||||||
| |||||||
1 | subsection (d) of Section 16-111.5 of the Public | ||||||
2 | Utilities Act; | ||||||
3 | (iii) provide that all costs associated with | ||||||
4 | the initial clean coal facility will be | ||||||
5 | periodically reported to the Federal Energy | ||||||
6 | Regulatory Commission and to purchasers in | ||||||
7 | accordance with applicable laws governing | ||||||
8 | cost-based wholesale power contracts; | ||||||
9 | (iv) permit the Illinois Power Agency to | ||||||
10 | assume ownership of the initial clean coal | ||||||
11 | facility, without monetary consideration and | ||||||
12 | otherwise on reasonable terms acceptable to the | ||||||
13 | Agency, if the Agency so requests no less than 3 | ||||||
14 | years prior to the end of the stated contract | ||||||
15 | term; | ||||||
16 | (v) require the owner of the initial clean | ||||||
17 | coal facility to provide documentation to the | ||||||
18 | Commission each year, starting in the facility's | ||||||
19 | first year of commercial operation, accurately | ||||||
20 | reporting the quantity of carbon emissions from | ||||||
21 | the facility that have been captured and | ||||||
22 | sequestered and report any quantities of carbon | ||||||
23 | released from the site or sites at which carbon | ||||||
24 | emissions were sequestered in prior years, based | ||||||
25 | on continuous monitoring of such sites. If, in any | ||||||
26 | year after the first year of commercial operation, |
| |||||||
| |||||||
1 | the owner of the facility fails to demonstrate | ||||||
2 | that the initial clean coal facility captured and | ||||||
3 | sequestered at least 50% of the total carbon | ||||||
4 | emissions that the facility would otherwise emit | ||||||
5 | or that sequestration of emissions from prior | ||||||
6 | years has failed, resulting in the release of | ||||||
7 | carbon dioxide into the atmosphere, the owner of | ||||||
8 | the facility must offset excess emissions. Any | ||||||
9 | such carbon offsets must be permanent, additional, | ||||||
10 | verifiable, real, located within the State of | ||||||
11 | Illinois, and legally and practicably enforceable. | ||||||
12 | The cost of such offsets for the facility that are | ||||||
13 | not recoverable shall not exceed $15 million in | ||||||
14 | any given year. No costs of any such purchases of | ||||||
15 | carbon offsets may be recovered from a utility or | ||||||
16 | its customers. All carbon offsets purchased for | ||||||
17 | this purpose and any carbon emission credits | ||||||
18 | associated with sequestration of carbon from the | ||||||
19 | facility must be permanently retired. The initial | ||||||
20 | clean coal facility shall not forfeit its | ||||||
21 | designation as a clean coal facility if the | ||||||
22 | facility fails to fully comply with the applicable | ||||||
23 | carbon sequestration requirements in any given | ||||||
24 | year, provided the requisite offsets are | ||||||
25 | purchased. However, the Attorney General, on | ||||||
26 | behalf of the People of the State of Illinois, may |
| |||||||
| |||||||
1 | specifically enforce the facility's sequestration | ||||||
2 | requirement and the other terms of this contract | ||||||
3 | provision. Compliance with the sequestration | ||||||
4 | requirements and offset purchase requirements | ||||||
5 | specified in paragraph (3) of this subsection (d) | ||||||
6 | shall be reviewed annually by an independent | ||||||
7 | expert retained by the owner of the initial clean | ||||||
8 | coal facility, with the advance written approval | ||||||
9 | of the Attorney General. The Commission may, in | ||||||
10 | the course of the review specified in item (vii), | ||||||
11 | reduce the allowable return on equity for the | ||||||
12 | facility if the facility willfully fails to comply | ||||||
13 | with the carbon capture and sequestration | ||||||
14 | requirements set forth in this item (v); | ||||||
15 | (vi) include limits on, and accordingly | ||||||
16 | provide for modification of, the amount the | ||||||
17 | utility is required to source under the sourcing | ||||||
18 | agreement consistent with paragraph (2) of this | ||||||
19 | subsection (d); | ||||||
20 | (vii) require Commission review: (1) to | ||||||
21 | determine the justness, reasonableness, and | ||||||
22 | prudence of the inputs to the formula referenced | ||||||
23 | in subparagraphs (A)(i) through (A)(iii) of | ||||||
24 | paragraph (3) of this subsection (d), prior to an | ||||||
25 | adjustment in those inputs including, without | ||||||
26 | limitation, the capital structure and return on |
| |||||||
| |||||||
1 | equity, fuel costs, and other operations and | ||||||
2 | maintenance costs and (2) to approve the costs to | ||||||
3 | be passed through to customers under the sourcing | ||||||
4 | agreement by which the utility satisfies its | ||||||
5 | statutory obligations. Commission review shall | ||||||
6 | occur no less than every 3 years, regardless of | ||||||
7 | whether any adjustments have been proposed, and | ||||||
8 | shall be completed within 9 months; | ||||||
9 | (viii) limit the utility's obligation to such | ||||||
10 | amount as the utility is allowed to recover | ||||||
11 | through tariffs filed with the Commission, | ||||||
12 | provided that neither the clean coal facility nor | ||||||
13 | the utility waives any right to assert federal | ||||||
14 | pre-emption or any other argument in response to a | ||||||
15 | purported disallowance of recovery costs; | ||||||
16 | (ix) limit the utility's or alternative retail | ||||||
17 | electric supplier's obligation to incur any | ||||||
18 | liability until such time as the facility is in | ||||||
19 | commercial operation and generating power and | ||||||
20 | energy and such power and energy is being | ||||||
21 | delivered to the facility busbar; | ||||||
22 | (x) provide that the owner or owners of the | ||||||
23 | initial clean coal facility, which is the | ||||||
24 | counterparty to such sourcing agreement, shall | ||||||
25 | have the right from time to time to elect whether | ||||||
26 | the obligations of the utility party thereto shall |
| |||||||
| |||||||
1 | be governed by the power purchase provisions or | ||||||
2 | the contract for differences provisions; | ||||||
3 | (xi) append documentation showing that the | ||||||
4 | formula rate and contract, insofar as they relate | ||||||
5 | to the power purchase provisions, have been | ||||||
6 | approved by the Federal Energy Regulatory | ||||||
7 | Commission pursuant to Section 205 of the Federal | ||||||
8 | Power Act; | ||||||
9 | (xii) provide that any changes to the terms of | ||||||
10 | the contract, insofar as such changes relate to | ||||||
11 | the power purchase provisions, are subject to | ||||||
12 | review under the public interest standard applied | ||||||
13 | by the Federal Energy Regulatory Commission | ||||||
14 | pursuant to Sections 205 and 206 of the Federal | ||||||
15 | Power Act; and | ||||||
16 | (xiii) conform with customary lender | ||||||
17 | requirements in power purchase agreements used as | ||||||
18 | the basis for financing non-utility generators. | ||||||
19 | (4) Effective date of sourcing agreements with the | ||||||
20 | initial clean coal facility. Any proposed sourcing | ||||||
21 | agreement with the initial clean coal facility shall not | ||||||
22 | become effective unless the following reports are prepared | ||||||
23 | and submitted and authorizations and approvals obtained: | ||||||
24 | (i) Facility cost report. The owner of the initial | ||||||
25 | clean coal facility shall submit to the Commission, | ||||||
26 | the Agency, and the General Assembly a front-end |
| |||||||
| |||||||
1 | engineering and design study, a facility cost report, | ||||||
2 | method of financing (including but not limited to | ||||||
3 | structure and associated costs), and an operating and | ||||||
4 | maintenance cost quote for the facility (collectively | ||||||
5 | "facility cost report"), which shall be prepared in | ||||||
6 | accordance with the requirements of this paragraph (4) | ||||||
7 | of subsection (d) of this Section, and shall provide | ||||||
8 | the Commission and the Agency access to the work | ||||||
9 | papers, relied upon documents, and any other backup | ||||||
10 | documentation related to the facility cost report. | ||||||
11 | (ii) Commission report. Within 6 months following | ||||||
12 | receipt of the facility cost report, the Commission, | ||||||
13 | in consultation with the Agency, shall submit a report | ||||||
14 | to the General Assembly setting forth its analysis of | ||||||
15 | the facility cost report. Such report shall include, | ||||||
16 | but not be limited to, a comparison of the costs | ||||||
17 | associated with electricity generated by the initial | ||||||
18 | clean coal facility to the costs associated with | ||||||
19 | electricity generated by other types of generation | ||||||
20 | facilities, an analysis of the rate impacts on | ||||||
21 | residential and small business customers over the life | ||||||
22 | of the sourcing agreements, and an analysis of the | ||||||
23 | likelihood that the initial clean coal facility will | ||||||
24 | commence commercial operation by and be delivering | ||||||
25 | power to the facility's busbar by 2016. To assist in | ||||||
26 | the preparation of its report, the Commission, in |
| |||||||
| |||||||
1 | consultation with the Agency, may hire one or more | ||||||
2 | experts or consultants, the costs of which shall be | ||||||
3 | paid for by the owner of the initial clean coal | ||||||
4 | facility. The Commission and Agency may begin the | ||||||
5 | process of selecting such experts or consultants prior | ||||||
6 | to receipt of the facility cost report. | ||||||
7 | (iii) General Assembly approval. The proposed | ||||||
8 | sourcing agreements shall not take effect unless, | ||||||
9 | based on the facility cost report and the Commission's | ||||||
10 | report, the General Assembly enacts authorizing | ||||||
11 | legislation approving (A) the projected price, stated | ||||||
12 | in cents per kilowatthour, to be charged for | ||||||
13 | electricity generated by the initial clean coal | ||||||
14 | facility, (B) the projected impact on residential and | ||||||
15 | small business customers' bills over the life of the | ||||||
16 | sourcing agreements, and (C) the maximum allowable | ||||||
17 | return on equity for the project; and | ||||||
18 | (iv) Commission review. If the General Assembly | ||||||
19 | enacts authorizing legislation pursuant to | ||||||
20 | subparagraph (iii) approving a sourcing agreement, the | ||||||
21 | Commission shall, within 90 days of such enactment, | ||||||
22 | complete a review of such sourcing agreement. During | ||||||
23 | such time period, the Commission shall implement any | ||||||
24 | directive of the General Assembly, resolve any | ||||||
25 | disputes between the parties to the sourcing agreement | ||||||
26 | concerning the terms of such agreement, approve the |
| |||||||
| |||||||
1 | form of such agreement, and issue an order finding | ||||||
2 | that the sourcing agreement is prudent and reasonable. | ||||||
3 | The facility cost report shall be prepared as follows: | ||||||
4 | (A) The facility cost report shall be prepared by | ||||||
5 | duly licensed engineering and construction firms | ||||||
6 | detailing the estimated capital costs payable to one | ||||||
7 | or more contractors or suppliers for the engineering, | ||||||
8 | procurement and construction of the components | ||||||
9 | comprising the initial clean coal facility and the | ||||||
10 | estimated costs of operation and maintenance of the | ||||||
11 | facility. The facility cost report shall include: | ||||||
12 | (i) an estimate of the capital cost of the | ||||||
13 | core plant based on one or more front end | ||||||
14 | engineering and design studies for the | ||||||
15 | gasification island and related facilities. The | ||||||
16 | core plant shall include all civil, structural, | ||||||
17 | mechanical, electrical, control, and safety | ||||||
18 | systems. | ||||||
19 | (ii) an estimate of the capital cost of the | ||||||
20 | balance of the plant, including any capital costs | ||||||
21 | associated with sequestration of carbon dioxide | ||||||
22 | emissions and all interconnects and interfaces | ||||||
23 | required to operate the facility, such as | ||||||
24 | transmission of electricity, construction or | ||||||
25 | backfeed power supply, pipelines to transport | ||||||
26 | substitute natural gas or carbon dioxide, potable |
| |||||||
| |||||||
1 | water supply, natural gas supply, water supply, | ||||||
2 | water discharge, landfill, access roads, and coal | ||||||
3 | delivery. | ||||||
4 | The quoted construction costs shall be expressed | ||||||
5 | in nominal dollars as of the date that the quote is | ||||||
6 | prepared and shall include capitalized financing costs | ||||||
7 | during construction,
taxes, insurance, and other | ||||||
8 | owner's costs, and an assumed escalation in materials | ||||||
9 | and labor beyond the date as of which the construction | ||||||
10 | cost quote is expressed. | ||||||
11 | (B) The front end engineering and design study for | ||||||
12 | the gasification island and the cost study for the | ||||||
13 | balance of plant shall include sufficient design work | ||||||
14 | to permit quantification of major categories of | ||||||
15 | materials, commodities and labor hours, and receipt of | ||||||
16 | quotes from vendors of major equipment required to | ||||||
17 | construct and operate the clean coal facility. | ||||||
18 | (C) The facility cost report shall also include an | ||||||
19 | operating and maintenance cost quote that will provide | ||||||
20 | the estimated cost of delivered fuel, personnel, | ||||||
21 | maintenance contracts, chemicals, catalysts, | ||||||
22 | consumables, spares, and other fixed and variable | ||||||
23 | operations and maintenance costs. The delivered fuel | ||||||
24 | cost estimate will be provided by a recognized third | ||||||
25 | party expert or experts in the fuel and transportation | ||||||
26 | industries. The balance of the operating and |
| |||||||
| |||||||
1 | maintenance cost quote, excluding delivered fuel | ||||||
2 | costs, will be developed based on the inputs provided | ||||||
3 | by duly licensed engineering and construction firms | ||||||
4 | performing the construction cost quote, potential | ||||||
5 | vendors under long-term service agreements and plant | ||||||
6 | operating agreements, or recognized third party plant | ||||||
7 | operator or operators. | ||||||
8 | The operating and maintenance cost quote | ||||||
9 | (including the cost of the front end engineering and | ||||||
10 | design study) shall be expressed in nominal dollars as | ||||||
11 | of the date that the quote is prepared and shall | ||||||
12 | include taxes, insurance, and other owner's costs, and | ||||||
13 | an assumed escalation in materials and labor beyond | ||||||
14 | the date as of which the operating and maintenance | ||||||
15 | cost quote is expressed. | ||||||
16 | (D) The facility cost report shall also include an | ||||||
17 | analysis of the initial clean coal facility's ability | ||||||
18 | to deliver power and energy into the applicable | ||||||
19 | regional transmission organization markets and an | ||||||
20 | analysis of the expected capacity factor for the | ||||||
21 | initial clean coal facility. | ||||||
22 | (E) Amounts paid to third parties unrelated to the | ||||||
23 | owner or owners of the initial clean coal facility to | ||||||
24 | prepare the core plant construction cost quote, | ||||||
25 | including the front end engineering and design study, | ||||||
26 | and the operating and maintenance cost quote will be |
| |||||||
| |||||||
1 | reimbursed through Coal Development Bonds. | ||||||
2 | (5) Re-powering and retrofitting coal-fired power | ||||||
3 | plants previously owned by Illinois utilities to qualify | ||||||
4 | as clean coal facilities. During the 2009 procurement | ||||||
5 | planning process and thereafter, the Agency and the | ||||||
6 | Commission shall consider sourcing agreements covering | ||||||
7 | electricity generated by power plants that were previously | ||||||
8 | owned by Illinois utilities and that have been or will be | ||||||
9 | converted into clean coal facilities, as defined by | ||||||
10 | Section 1-10 of this Act. Pursuant to such procurement | ||||||
11 | planning process, the owners of such facilities may | ||||||
12 | propose to the Agency sourcing agreements with utilities | ||||||
13 | and alternative retail electric suppliers required to | ||||||
14 | comply with subsection (d) of this Section and item (5) of | ||||||
15 | subsection (d) of Section 16-115 of the Public Utilities | ||||||
16 | Act, covering electricity generated by such facilities. In | ||||||
17 | the case of sourcing agreements that are power purchase | ||||||
18 | agreements, the contract price for electricity sales shall | ||||||
19 | be established on a cost of service basis. In the case of | ||||||
20 | sourcing agreements that are contracts for differences, | ||||||
21 | the contract price from which the reference price is | ||||||
22 | subtracted shall be established on a cost of service | ||||||
23 | basis. The Agency and the Commission may approve any such | ||||||
24 | utility sourcing agreements that do not exceed cost-based | ||||||
25 | benchmarks developed by the procurement administrator, in | ||||||
26 | consultation with the Commission staff, Agency staff and |
| |||||||
| |||||||
1 | the procurement monitor, subject to Commission review and | ||||||
2 | approval. The Commission shall have authority to inspect | ||||||
3 | all books and records associated with these clean coal | ||||||
4 | facilities during the term of any such contract. | ||||||
5 | (6) Costs incurred under this subsection (d) or | ||||||
6 | pursuant to a contract entered into under this subsection | ||||||
7 | (d) shall be deemed prudently incurred and reasonable in | ||||||
8 | amount and the electric utility shall be entitled to full | ||||||
9 | cost recovery pursuant to the tariffs filed with the | ||||||
10 | Commission. | ||||||
11 | (d-5) Zero emission standard. | ||||||
12 | (1) Beginning with the delivery year commencing on | ||||||
13 | June 1, 2017, the Agency shall, for electric utilities | ||||||
14 | that serve at least 100,000 retail customers in this | ||||||
15 | State, procure contracts with zero emission facilities | ||||||
16 | that are reasonably capable of generating cost-effective | ||||||
17 | zero emission credits in an amount approximately equal to | ||||||
18 | 16% of the actual amount of electricity delivered by each | ||||||
19 | electric utility to retail customers in the State during | ||||||
20 | calendar year 2014. For an electric utility serving fewer | ||||||
21 | than 100,000 retail customers in this State that | ||||||
22 | requested, under Section 16-111.5 of the Public Utilities | ||||||
23 | Act, that the Agency procure power and energy for all or a | ||||||
24 | portion of the utility's Illinois load for the delivery | ||||||
25 | year commencing June 1, 2016, the Agency shall procure | ||||||
26 | contracts with zero emission facilities that are |
| |||||||
| |||||||
1 | reasonably capable of generating cost-effective zero | ||||||
2 | emission credits in an amount approximately equal to 16% | ||||||
3 | of the portion of power and energy to be procured by the | ||||||
4 | Agency for the utility. The duration of the contracts | ||||||
5 | procured under this subsection (d-5) shall be for a term | ||||||
6 | of 10 years ending May 31, 2027. The quantity of zero | ||||||
7 | emission credits to be procured under the contracts shall | ||||||
8 | be all of the zero emission credits generated by the zero | ||||||
9 | emission facility in each delivery year; however, if the | ||||||
10 | zero emission facility is owned by more than one entity, | ||||||
11 | then the quantity of zero emission credits to be procured | ||||||
12 | under the contracts shall be the amount of zero emission | ||||||
13 | credits that are generated from the portion of the zero | ||||||
14 | emission facility that is owned by the winning supplier. | ||||||
15 | The 16% value identified in this paragraph (1) is the | ||||||
16 | average of the percentage targets in subparagraph (B) of | ||||||
17 | paragraph (1) of subsection (c) of this Section for the 5 | ||||||
18 | delivery years beginning June 1, 2017. | ||||||
19 | The procurement process shall be subject to the | ||||||
20 | following provisions: | ||||||
21 | (A) Those zero emission facilities that intend to | ||||||
22 | participate in the procurement shall submit to the | ||||||
23 | Agency the following eligibility information for each | ||||||
24 | zero emission facility on or before the date | ||||||
25 | established by the Agency: | ||||||
26 | (i) the in-service date and remaining useful |
| |||||||
| |||||||
1 | life of the zero emission facility; | ||||||
2 | (ii) the amount of power generated annually | ||||||
3 | for each of the years 2005 through 2015, and the | ||||||
4 | projected zero emission credits to be generated | ||||||
5 | over the remaining useful life of the zero | ||||||
6 | emission facility, which shall be used to | ||||||
7 | determine the capability of each facility; | ||||||
8 | (iii) the annual zero emission facility cost | ||||||
9 | projections, expressed on a per megawatthour | ||||||
10 | basis, over the next 6 delivery years, which shall | ||||||
11 | include the following: operation and maintenance | ||||||
12 | expenses; fully allocated overhead costs, which | ||||||
13 | shall be allocated using the methodology developed | ||||||
14 | by the Institute for Nuclear Power Operations; | ||||||
15 | fuel expenditures; non-fuel capital expenditures; | ||||||
16 | spent fuel expenditures; a return on working | ||||||
17 | capital; the cost of operational and market risks | ||||||
18 | that could be avoided by ceasing operation; and | ||||||
19 | any other costs necessary for continued | ||||||
20 | operations, provided that "necessary" means, for | ||||||
21 | purposes of this item (iii), that the costs could | ||||||
22 | reasonably be avoided only by ceasing operations | ||||||
23 | of the zero emission facility; and | ||||||
24 | (iv) a commitment to continue operating, for | ||||||
25 | the duration of the contract or contracts executed | ||||||
26 | under the procurement held under this subsection |
| |||||||
| |||||||
1 | (d-5), the zero emission facility that produces | ||||||
2 | the zero emission credits to be procured in the | ||||||
3 | procurement. | ||||||
4 | The information described in item (iii) of this | ||||||
5 | subparagraph (A) may be submitted on a confidential | ||||||
6 | basis and shall be treated and maintained by the | ||||||
7 | Agency, the procurement administrator, and the | ||||||
8 | Commission as confidential and proprietary and exempt | ||||||
9 | from disclosure under subparagraphs (a) and (g) of | ||||||
10 | paragraph (1) of Section 7 of the Freedom of | ||||||
11 | Information Act. The Office of Attorney General shall | ||||||
12 | have access to, and maintain the confidentiality of, | ||||||
13 | such information pursuant to Section 6.5 of the | ||||||
14 | Attorney General Act. | ||||||
15 | (B) The price for each zero emission credit | ||||||
16 | procured under this subsection (d-5) for each delivery | ||||||
17 | year shall be in an amount that equals the Social Cost | ||||||
18 | of Carbon, expressed on a price per megawatthour | ||||||
19 | basis. However, to ensure that the procurement remains | ||||||
20 | affordable to retail customers in this State if | ||||||
21 | electricity prices increase, the price in an | ||||||
22 | applicable delivery year shall be reduced below the | ||||||
23 | Social Cost of Carbon by the amount ("Price | ||||||
24 | Adjustment") by which the market price index for the | ||||||
25 | applicable delivery year exceeds the baseline market | ||||||
26 | price index for the consecutive 12-month period ending |
| |||||||
| |||||||
1 | May 31, 2016. If the Price Adjustment is greater than | ||||||
2 | or equal to the Social Cost of Carbon in an applicable | ||||||
3 | delivery year, then no payments shall be due in that | ||||||
4 | delivery year. The components of this calculation are | ||||||
5 | defined as follows: | ||||||
6 | (i) Social Cost of Carbon: The Social Cost of | ||||||
7 | Carbon is $16.50 per megawatthour, which is based | ||||||
8 | on the U.S. Interagency Working Group on Social | ||||||
9 | Cost of Carbon's price in the August 2016 | ||||||
10 | Technical Update using a 3% discount rate, | ||||||
11 | adjusted for inflation for each year of the | ||||||
12 | program. Beginning with the delivery year | ||||||
13 | commencing June 1, 2023, the price per | ||||||
14 | megawatthour shall increase by $1 per | ||||||
15 | megawatthour, and continue to increase by an | ||||||
16 | additional $1 per megawatthour each delivery year | ||||||
17 | thereafter. | ||||||
18 | (ii) Baseline market price index: The baseline | ||||||
19 | market price index for the consecutive 12-month | ||||||
20 | period ending May 31, 2016 is $31.40 per | ||||||
21 | megawatthour, which is based on the sum of (aa) | ||||||
22 | the average day-ahead energy price across all | ||||||
23 | hours of such 12-month period at the PJM | ||||||
24 | Interconnection LLC Northern Illinois Hub, (bb) | ||||||
25 | 50% multiplied by the Base Residual Auction, or | ||||||
26 | its successor, capacity price for the rest of the |
| |||||||
| |||||||
1 | RTO zone group determined by PJM Interconnection | ||||||
2 | LLC, divided by 24 hours per day, and (cc) 50% | ||||||
3 | multiplied by the Planning Resource Auction, or | ||||||
4 | its successor, capacity price for Zone 4 | ||||||
5 | determined by the Midcontinent Independent System | ||||||
6 | Operator, Inc., divided by 24 hours per day. | ||||||
7 | (iii) Market price index: The market price | ||||||
8 | index for a delivery year shall be the sum of | ||||||
9 | projected energy prices and projected capacity | ||||||
10 | prices determined as follows: | ||||||
11 | (aa) Projected energy prices: the | ||||||
12 | projected energy prices for the applicable | ||||||
13 | delivery year shall be calculated once for the | ||||||
14 | year using the forward market price for the | ||||||
15 | PJM Interconnection, LLC Northern Illinois | ||||||
16 | Hub. The forward market price shall be | ||||||
17 | calculated as follows: the energy forward | ||||||
18 | prices for each month of the applicable | ||||||
19 | delivery year averaged for each trade date | ||||||
20 | during the calendar year immediately preceding | ||||||
21 | that delivery year to produce a single energy | ||||||
22 | forward price for the delivery year. The | ||||||
23 | forward market price calculation shall use | ||||||
24 | data published by the Intercontinental | ||||||
25 | Exchange, or its successor. | ||||||
26 | (bb) Projected capacity prices: |
| |||||||
| |||||||
1 | (I) For the delivery years commencing | ||||||
2 | June 1, 2017, June 1, 2018, and June 1, | ||||||
3 | 2019, the projected capacity price shall | ||||||
4 | be equal to the sum of (1) 50% multiplied | ||||||
5 | by the Base Residual Auction, or its | ||||||
6 | successor, price for the rest of the RTO | ||||||
7 | zone group as determined by PJM | ||||||
8 | Interconnection LLC, divided by 24 hours | ||||||
9 | per day and, (2) 50% multiplied by the | ||||||
10 | resource auction price determined in the | ||||||
11 | resource auction administered by the | ||||||
12 | Midcontinent Independent System Operator, | ||||||
13 | Inc., in which the largest percentage of | ||||||
14 | load cleared for Local Resource Zone 4, | ||||||
15 | divided by 24 hours per day, and where | ||||||
16 | such price is determined by the | ||||||
17 | Midcontinent Independent System Operator, | ||||||
18 | Inc. | ||||||
19 | (II) For the delivery year commencing | ||||||
20 | June 1, 2020, and each year thereafter, | ||||||
21 | the projected capacity price shall be | ||||||
22 | equal to the sum of (1) 50% multiplied by | ||||||
23 | the Base Residual Auction, or its | ||||||
24 | successor, price for the ComEd zone as | ||||||
25 | determined by PJM Interconnection LLC, | ||||||
26 | divided by 24 hours per day, and (2) 50% |
| |||||||
| |||||||
1 | multiplied by the resource auction price | ||||||
2 | determined in the resource auction | ||||||
3 | administered by the Midcontinent | ||||||
4 | Independent System Operator, Inc., in | ||||||
5 | which the largest percentage of load | ||||||
6 | cleared for Local Resource Zone 4, divided | ||||||
7 | by 24 hours per day, and where such price | ||||||
8 | is determined by the Midcontinent | ||||||
9 | Independent System Operator, Inc. | ||||||
10 | For purposes of this subsection (d-5): | ||||||
11 | "Rest of the RTO" and "ComEd Zone" shall have | ||||||
12 | the meaning ascribed to them by PJM | ||||||
13 | Interconnection, LLC. | ||||||
14 | "RTO" means regional transmission | ||||||
15 | organization. | ||||||
16 | (C) No later than 45 days after June 1, 2017 (the | ||||||
17 | effective date of Public Act 99-906), the Agency shall | ||||||
18 | publish its proposed zero emission standard | ||||||
19 | procurement plan. The plan shall be consistent with | ||||||
20 | the provisions of this paragraph (1) and shall provide | ||||||
21 | that winning bids shall be selected based on public | ||||||
22 | interest criteria that include, but are not limited | ||||||
23 | to, minimizing carbon dioxide emissions that result | ||||||
24 | from electricity consumed in Illinois and minimizing | ||||||
25 | sulfur dioxide, nitrogen oxide, and particulate matter | ||||||
26 | emissions that adversely affect the citizens of this |
| |||||||
| |||||||
1 | State. In particular, the selection of winning bids | ||||||
2 | shall take into account the incremental environmental | ||||||
3 | benefits resulting from the procurement, such as any | ||||||
4 | existing environmental benefits that are preserved by | ||||||
5 | the procurements held under Public Act 99-906 and | ||||||
6 | would cease to exist if the procurements were not | ||||||
7 | held, including the preservation of zero emission | ||||||
8 | facilities. The plan shall also describe in detail how | ||||||
9 | each public interest factor shall be considered and | ||||||
10 | weighted in the bid selection process to ensure that | ||||||
11 | the public interest criteria are applied to the | ||||||
12 | procurement and given full effect. | ||||||
13 | For purposes of developing the plan, the Agency | ||||||
14 | shall consider any reports issued by a State agency, | ||||||
15 | board, or commission under House Resolution 1146 of | ||||||
16 | the 98th General Assembly and paragraph (4) of | ||||||
17 | subsection (d) of this Section, as well as publicly | ||||||
18 | available analyses and studies performed by or for | ||||||
19 | regional transmission organizations that serve the | ||||||
20 | State and their independent market monitors. | ||||||
21 | Upon publishing of the zero emission standard | ||||||
22 | procurement plan, copies of the plan shall be posted | ||||||
23 | and made publicly available on the Agency's website. | ||||||
24 | All interested parties shall have 10 days following | ||||||
25 | the date of posting to provide comment to the Agency on | ||||||
26 | the plan. All comments shall be posted to the Agency's |
| |||||||
| |||||||
1 | website. Following the end of the comment period, but | ||||||
2 | no more than 60 days later than June 1, 2017 (the | ||||||
3 | effective date of Public Act 99-906), the Agency shall | ||||||
4 | revise the plan as necessary based on the comments | ||||||
5 | received and file its zero emission standard | ||||||
6 | procurement plan with the Commission. | ||||||
7 | If the Commission determines that the plan will | ||||||
8 | result in the procurement of cost-effective zero | ||||||
9 | emission credits, then the Commission shall, after | ||||||
10 | notice and hearing, but no later than 45 days after the | ||||||
11 | Agency filed the plan, approve the plan or approve | ||||||
12 | with modification. For purposes of this subsection | ||||||
13 | (d-5), "cost effective" means the projected costs of | ||||||
14 | procuring zero emission credits from zero emission | ||||||
15 | facilities do not cause the limit stated in paragraph | ||||||
16 | (2) of this subsection to be exceeded. | ||||||
17 | (C-5) As part of the Commission's review and | ||||||
18 | acceptance or rejection of the procurement results, | ||||||
19 | the Commission shall, in its public notice of | ||||||
20 | successful bidders: | ||||||
21 | (i) identify how the winning bids satisfy the | ||||||
22 | public interest criteria described in subparagraph | ||||||
23 | (C) of this paragraph (1) of minimizing carbon | ||||||
24 | dioxide emissions that result from electricity | ||||||
25 | consumed in Illinois and minimizing sulfur | ||||||
26 | dioxide, nitrogen oxide, and particulate matter |
| |||||||
| |||||||
1 | emissions that adversely affect the citizens of | ||||||
2 | this State; | ||||||
3 | (ii) specifically address how the selection of | ||||||
4 | winning bids takes into account the incremental | ||||||
5 | environmental benefits resulting from the | ||||||
6 | procurement, including any existing environmental | ||||||
7 | benefits that are preserved by the procurements | ||||||
8 | held under Public Act 99-906 and would have ceased | ||||||
9 | to exist if the procurements had not been held, | ||||||
10 | such as the preservation of zero emission | ||||||
11 | facilities; | ||||||
12 | (iii) quantify the environmental benefit of | ||||||
13 | preserving the resources identified in item (ii) | ||||||
14 | of this subparagraph (C-5), including the | ||||||
15 | following: | ||||||
16 | (aa) the value of avoided greenhouse gas | ||||||
17 | emissions measured as the product of the zero | ||||||
18 | emission facilities' output over the contract | ||||||
19 | term multiplied by the U.S. Environmental | ||||||
20 | Protection Agency eGrid subregion carbon | ||||||
21 | dioxide emission rate and the U.S. Interagency | ||||||
22 | Working Group on Social Cost of Carbon's price | ||||||
23 | in the August 2016 Technical Update using a 3% | ||||||
24 | discount rate, adjusted for inflation for each | ||||||
25 | delivery year; and | ||||||
26 | (bb) the costs of replacement with other |
| |||||||
| |||||||
1 | zero carbon dioxide resources, including wind | ||||||
2 | and photovoltaic, based upon the simple | ||||||
3 | average of the following: | ||||||
4 | (I) the price, or if there is more | ||||||
5 | than one price, the average of the prices, | ||||||
6 | paid for renewable energy credits from new | ||||||
7 | utility-scale wind projects in the | ||||||
8 | procurement events specified in item (i) | ||||||
9 | of subparagraph (G) of paragraph (1) of | ||||||
10 | subsection (c) of this Section; and | ||||||
11 | (II) the price, or if there is more | ||||||
12 | than one price, the average of the prices, | ||||||
13 | paid for renewable energy credits from new | ||||||
14 | utility-scale solar projects and | ||||||
15 | brownfield site photovoltaic projects in | ||||||
16 | the procurement events specified in item | ||||||
17 | (ii) of subparagraph (G) of paragraph (1) | ||||||
18 | of subsection (c) of this Section and, | ||||||
19 | after January 1, 2015, renewable energy | ||||||
20 | credits from photovoltaic distributed | ||||||
21 | generation projects in procurement events | ||||||
22 | held under subsection (c) of this Section. | ||||||
23 | Each utility shall enter into binding contractual | ||||||
24 | arrangements with the winning suppliers. | ||||||
25 | The procurement described in this subsection | ||||||
26 | (d-5), including, but not limited to, the execution of |
| |||||||
| |||||||
1 | all contracts procured, shall be completed no later | ||||||
2 | than May 10, 2017. Based on the effective date of | ||||||
3 | Public Act 99-906, the Agency and Commission may, as | ||||||
4 | appropriate, modify the various dates and timelines | ||||||
5 | under this subparagraph and subparagraphs (C) and (D) | ||||||
6 | of this paragraph (1). The procurement and plan | ||||||
7 | approval processes required by this subsection (d-5) | ||||||
8 | shall be conducted in conjunction with the procurement | ||||||
9 | and plan approval processes required by subsection (c) | ||||||
10 | of this Section and Section 16-111.5 of the Public | ||||||
11 | Utilities Act, to the extent practicable. | ||||||
12 | Notwithstanding whether a procurement event is | ||||||
13 | conducted under Section 16-111.5 of the Public | ||||||
14 | Utilities Act, the Agency shall immediately initiate a | ||||||
15 | procurement process on June 1, 2017 (the effective | ||||||
16 | date of Public Act 99-906). | ||||||
17 | (D) Following the procurement event described in | ||||||
18 | this paragraph (1) and consistent with subparagraph | ||||||
19 | (B) of this paragraph (1), the Agency shall calculate | ||||||
20 | the payments to be made under each contract for the | ||||||
21 | next delivery year based on the market price index for | ||||||
22 | that delivery year. The Agency shall publish the | ||||||
23 | payment calculations no later than May 25, 2017 and | ||||||
24 | every May 25 thereafter. | ||||||
25 | (E) Notwithstanding the requirements of this | ||||||
26 | subsection (d-5), the contracts executed under this |
| |||||||
| |||||||
1 | subsection (d-5) shall provide that the zero emission | ||||||
2 | facility may, as applicable, suspend or terminate | ||||||
3 | performance under the contracts in the following | ||||||
4 | instances: | ||||||
5 | (i) A zero emission facility shall be excused | ||||||
6 | from its performance under the contract for any | ||||||
7 | cause beyond the control of the resource, | ||||||
8 | including, but not restricted to, acts of God, | ||||||
9 | flood, drought, earthquake, storm, fire, | ||||||
10 | lightning, epidemic, war, riot, civil disturbance | ||||||
11 | or disobedience, labor dispute, labor or material | ||||||
12 | shortage, sabotage, acts of public enemy, | ||||||
13 | explosions, orders, regulations or restrictions | ||||||
14 | imposed by governmental, military, or lawfully | ||||||
15 | established civilian authorities, which, in any of | ||||||
16 | the foregoing cases, by exercise of commercially | ||||||
17 | reasonable efforts the zero emission facility | ||||||
18 | could not reasonably have been expected to avoid, | ||||||
19 | and which, by the exercise of commercially | ||||||
20 | reasonable efforts, it has been unable to | ||||||
21 | overcome. In such event, the zero emission | ||||||
22 | facility shall be excused from performance for the | ||||||
23 | duration of the event, including, but not limited | ||||||
24 | to, delivery of zero emission credits, and no | ||||||
25 | payment shall be due to the zero emission facility | ||||||
26 | during the duration of the event. |
| |||||||
| |||||||
1 | (ii) A zero emission facility shall be | ||||||
2 | permitted to terminate the contract if legislation | ||||||
3 | is enacted into law by the General Assembly that | ||||||
4 | imposes or authorizes a new tax, special | ||||||
5 | assessment, or fee on the generation of | ||||||
6 | electricity, the ownership or leasehold of a | ||||||
7 | generating unit, or the privilege or occupation of | ||||||
8 | such generation, ownership, or leasehold of | ||||||
9 | generation units by a zero emission facility. | ||||||
10 | However, the provisions of this item (ii) do not | ||||||
11 | apply to any generally applicable tax, special | ||||||
12 | assessment or fee, or requirements imposed by | ||||||
13 | federal law. | ||||||
14 | (iii) A zero emission facility shall be | ||||||
15 | permitted to terminate the contract in the event | ||||||
16 | that the resource requires capital expenditures in | ||||||
17 | excess of $40,000,000 that were neither known nor | ||||||
18 | reasonably foreseeable at the time it executed the | ||||||
19 | contract and that a prudent owner or operator of | ||||||
20 | such resource would not undertake. | ||||||
21 | (iv) A zero emission facility shall be | ||||||
22 | permitted to terminate the contract in the event | ||||||
23 | the Nuclear Regulatory Commission terminates the | ||||||
24 | resource's license. | ||||||
25 | (F) If the zero emission facility elects to | ||||||
26 | terminate a contract under subparagraph (E) of this |
| |||||||
| |||||||
1 | paragraph (1), then the Commission shall reopen the | ||||||
2 | docket in which the Commission approved the zero | ||||||
3 | emission standard procurement plan under subparagraph | ||||||
4 | (C) of this paragraph (1) and, after notice and | ||||||
5 | hearing, enter an order acknowledging the contract | ||||||
6 | termination election if such termination is consistent | ||||||
7 | with the provisions of this subsection (d-5). | ||||||
8 | (2) For purposes of this subsection (d-5), the amount | ||||||
9 | paid per kilowatthour means the total amount paid for | ||||||
10 | electric service expressed on a per kilowatthour basis. | ||||||
11 | For purposes of this subsection (d-5), the total amount | ||||||
12 | paid for electric service includes, without limitation, | ||||||
13 | amounts paid for supply, transmission, distribution, | ||||||
14 | surcharges, and add-on taxes. | ||||||
15 | Notwithstanding the requirements of this subsection | ||||||
16 | (d-5), the contracts executed under this subsection (d-5) | ||||||
17 | shall provide that the total of zero emission credits | ||||||
18 | procured under a procurement plan shall be subject to the | ||||||
19 | limitations of this paragraph (2). For each delivery year, | ||||||
20 | the contractual volume receiving payments in such year | ||||||
21 | shall be reduced for all retail customers based on the | ||||||
22 | amount necessary to limit the net increase that delivery | ||||||
23 | year to the costs of those credits included in the amounts | ||||||
24 | paid by eligible retail customers in connection with | ||||||
25 | electric service to no more than 1.65% of the amount paid | ||||||
26 | per kilowatthour by eligible retail customers during the |
| |||||||
| |||||||
1 | year ending May 31, 2009. The result of this computation | ||||||
2 | shall apply to and reduce the procurement for all retail | ||||||
3 | customers, and all those customers shall pay the same | ||||||
4 | single, uniform cents per kilowatthour charge under | ||||||
5 | subsection (k) of Section 16-108 of the Public Utilities | ||||||
6 | Act. To arrive at a maximum dollar amount of zero emission | ||||||
7 | credits to be paid for the particular delivery year, the | ||||||
8 | resulting per kilowatthour amount shall be applied to the | ||||||
9 | actual amount of kilowatthours of electricity delivered by | ||||||
10 | the electric utility in the delivery year immediately | ||||||
11 | prior to the procurement, to all retail customers in its | ||||||
12 | service territory. Unpaid contractual volume for any | ||||||
13 | delivery year shall be paid in any subsequent delivery | ||||||
14 | year in which such payments can be made without exceeding | ||||||
15 | the amount specified in this paragraph (2). The | ||||||
16 | calculations required by this paragraph (2) shall be made | ||||||
17 | only once for each procurement plan year. Once the | ||||||
18 | determination as to the amount of zero emission credits to | ||||||
19 | be paid is made based on the calculations set forth in this | ||||||
20 | paragraph (2), no subsequent rate impact determinations | ||||||
21 | shall be made and no adjustments to those contract amounts | ||||||
22 | shall be allowed. All costs incurred under those contracts | ||||||
23 | and in implementing this subsection (d-5) shall be | ||||||
24 | recovered by the electric utility as provided in this | ||||||
25 | Section. | ||||||
26 | No later than June 30, 2019, the Commission shall |
| |||||||
| |||||||
1 | review the limitation on the amount of zero emission | ||||||
2 | credits procured under this subsection (d-5) and report to | ||||||
3 | the General Assembly its findings as to whether that | ||||||
4 | limitation unduly constrains the procurement of | ||||||
5 | cost-effective zero emission credits. | ||||||
6 | (3) Six years after the execution of a contract under | ||||||
7 | this subsection (d-5), the Agency shall determine whether | ||||||
8 | the actual zero emission credit payments received by the | ||||||
9 | supplier over the 6-year period exceed the Average ZEC | ||||||
10 | Payment. In addition, at the end of the term of a contract | ||||||
11 | executed under this subsection (d-5), or at the time, if | ||||||
12 | any, a zero emission facility's contract is terminated | ||||||
13 | under subparagraph (E) of paragraph (1) of this subsection | ||||||
14 | (d-5), then the Agency shall determine whether the actual | ||||||
15 | zero emission credit payments received by the supplier | ||||||
16 | over the term of the contract exceed the Average ZEC | ||||||
17 | Payment, after taking into account any amounts previously | ||||||
18 | credited back to the utility under this paragraph (3). If | ||||||
19 | the Agency determines that the actual zero emission credit | ||||||
20 | payments received by the supplier over the relevant period | ||||||
21 | exceed the Average ZEC Payment, then the supplier shall | ||||||
22 | credit the difference back to the utility. The amount of | ||||||
23 | the credit shall be remitted to the applicable electric | ||||||
24 | utility no later than 120 days after the Agency's | ||||||
25 | determination, which the utility shall reflect as a credit | ||||||
26 | on its retail customer bills as soon as practicable; |
| |||||||
| |||||||
1 | however, the credit remitted to the utility shall not | ||||||
2 | exceed the total amount of payments received by the | ||||||
3 | facility under its contract. | ||||||
4 | For purposes of this Section, the Average ZEC Payment | ||||||
5 | shall be calculated by multiplying the quantity of zero | ||||||
6 | emission credits delivered under the contract times the | ||||||
7 | average contract price. The average contract price shall | ||||||
8 | be determined by subtracting the amount calculated under | ||||||
9 | subparagraph (B) of this paragraph (3) from the amount | ||||||
10 | calculated under subparagraph (A) of this paragraph (3), | ||||||
11 | as follows: | ||||||
12 | (A) The average of the Social Cost of Carbon, as | ||||||
13 | defined in subparagraph (B) of paragraph (1) of this | ||||||
14 | subsection (d-5), during the term of the contract. | ||||||
15 | (B) The average of the market price indices, as | ||||||
16 | defined in subparagraph (B) of paragraph (1) of this | ||||||
17 | subsection (d-5), during the term of the contract, | ||||||
18 | minus the baseline market price index, as defined in | ||||||
19 | subparagraph (B) of paragraph (1) of this subsection | ||||||
20 | (d-5). | ||||||
21 | If the subtraction yields a negative number, then the | ||||||
22 | Average ZEC Payment shall be zero. | ||||||
23 | (4) Cost-effective zero emission credits procured from | ||||||
24 | zero emission facilities shall satisfy the applicable | ||||||
25 | definitions set forth in Section 1-10 of this Act. | ||||||
26 | (5) The electric utility shall retire all zero |
| |||||||
| |||||||
1 | emission credits used to comply with the requirements of | ||||||
2 | this subsection (d-5). | ||||||
3 | (6) Electric utilities shall be entitled to recover | ||||||
4 | all of the costs associated with the procurement of zero | ||||||
5 | emission credits through an automatic adjustment clause | ||||||
6 | tariff in accordance with subsection (k) and (m) of | ||||||
7 | Section 16-108 of the Public Utilities Act, and the | ||||||
8 | contracts executed under this subsection (d-5) shall | ||||||
9 | provide that the utilities' payment obligations under such | ||||||
10 | contracts shall be reduced if an adjustment is required | ||||||
11 | under subsection (m) of Section 16-108 of the Public | ||||||
12 | Utilities Act. | ||||||
13 | (7) This subsection (d-5) shall become inoperative on | ||||||
14 | January 1, 2028. | ||||||
15 | (d-10) Nuclear Plant Assistance; carbon mitigation | ||||||
16 | credits. | ||||||
17 | (1) The General Assembly finds: | ||||||
18 | (A) The health, welfare, and prosperity of all | ||||||
19 | Illinois citizens require that the State of Illinois act | ||||||
20 | to avoid and not increase carbon emissions from electric | ||||||
21 | generation sources while continuing to ensure affordable, | ||||||
22 | stable, and reliable electricity to all citizens. | ||||||
23 | (B) Absent immediate action by the State to preserve | ||||||
24 | existing carbon-free energy resources, those resources may | ||||||
25 | retire, and the electric generation needs of Illinois' | ||||||
26 | retail customers may be met instead by facilities that |
| |||||||
| |||||||
1 | emit significant amounts of carbon pollution and other | ||||||
2 | harmful air pollutants at a high social and economic cost | ||||||
3 | until Illinois is able to develop other forms of clean | ||||||
4 | energy. | ||||||
5 | (C) The General Assembly finds that nuclear power | ||||||
6 | generation is necessary for the State's transition to 100% | ||||||
7 | clean energy, and ensuring continued operation of nuclear | ||||||
8 | plants advances environmental and public health interests | ||||||
9 | through providing carbon-free electricity while reducing | ||||||
10 | the air pollution profile of the Illinois energy | ||||||
11 | generation fleet. | ||||||
12 | (D) The clean energy attributes of nuclear generation | ||||||
13 | facilities support the State in its efforts to achieve | ||||||
14 | 100% clean energy. | ||||||
15 | (E) The State currently invests in various forms of | ||||||
16 | clean energy, including, but not limited to, renewable | ||||||
17 | energy, energy efficiency, and low-emission vehicles, | ||||||
18 | among others. | ||||||
19 | (F) The Environmental Protection Agency commissioned | ||||||
20 | an independent audit which provided a detailed assessment | ||||||
21 | of the financial condition of the Illinois nuclear fleet | ||||||
22 | to evaluate its financial viability and whether the | ||||||
23 | environmental benefits of such resources were at risk. The | ||||||
24 | report identified the risk of losing the environmental | ||||||
25 | benefits of several specific nuclear units. The report | ||||||
26 | also identified that the LaSalle County Generating Station |
| |||||||
| |||||||
1 | will continue to operate through 2026 and therefore is not | ||||||
2 | eligible to participate in the carbon mitigation credit | ||||||
3 | program. | ||||||
4 | (G) Nuclear plants provide carbon-free energy, which | ||||||
5 | helps to avoid many health-related negative impacts for | ||||||
6 | Illinois residents. | ||||||
7 | (H) The procurement of carbon mitigation credits | ||||||
8 | representing the environmental benefits of carbon-free | ||||||
9 | generation will further the State's efforts at achieving | ||||||
10 | 100% clean energy and decarbonizing the electricity sector | ||||||
11 | in a safe, reliable, and affordable manner. Further, the | ||||||
12 | procurement of carbon emission credits will enhance the | ||||||
13 | health and welfare of Illinois residents through decreased | ||||||
14 | reliance on more highly polluting generation. | ||||||
15 | (I) The General Assembly therefore finds it necessary | ||||||
16 | to establish carbon mitigation credits to ensure decreased | ||||||
17 | reliance on more carbon-intensive energy resources, for | ||||||
18 | transitioning to a fully decarbonized electricity sector, | ||||||
19 | and to help ensure health and welfare of the State's | ||||||
20 | residents. | ||||||
21 | (2) As used in this subsection: | ||||||
22 | "Baseline costs" means costs used to establish a customer | ||||||
23 | protection cap that have been evaluated through an independent | ||||||
24 | audit of a carbon-free energy resource conducted by the | ||||||
25 | Environmental Protection Agency that evaluated projected | ||||||
26 | annual costs for operation and maintenance expenses; fully |
| |||||||
| |||||||
1 | allocated overhead costs, which shall be allocated using the | ||||||
2 | methodology developed by the Institute for Nuclear Power | ||||||
3 | Operations; fuel expenditures; nonfuel capital expenditures; | ||||||
4 | spent fuel expenditures; a return on working capital; the cost | ||||||
5 | of operational and market risks that could be avoided by | ||||||
6 | ceasing operation; and any other costs necessary for continued | ||||||
7 | operations, provided that "necessary" means, for purposes of | ||||||
8 | this definition, that the costs could reasonably be avoided | ||||||
9 | only by ceasing operations of the carbon-free energy resource. | ||||||
10 | "Carbon mitigation credit" means a tradable credit that | ||||||
11 | represents the carbon emission reduction attributes of one | ||||||
12 | megawatt-hour of energy produced from a carbon-free energy | ||||||
13 | resource. | ||||||
14 | "Carbon-free energy resource" means a generation facility | ||||||
15 | that: (1) is fueled by nuclear power; and (2) is | ||||||
16 | interconnected to PJM Interconnection, LLC. | ||||||
17 | (3) Procurement. | ||||||
18 | (A) Beginning with the delivery year commencing on | ||||||
19 | June 1, 2022, the Agency shall, for electric utilities | ||||||
20 | serving at least 3,000,000 retail customers in the State, | ||||||
21 | seek to procure contracts for no more than approximately | ||||||
22 | 54,500,000 cost-effective carbon mitigation credits from | ||||||
23 | carbon-free energy resources because such credits are | ||||||
24 | necessary to support current levels of carbon-free energy | ||||||
25 | generation and ensure the State meets its carbon dioxide | ||||||
26 | emissions reduction goals. The Agency shall not make a |
| |||||||
| |||||||
1 | partial award of a contract for carbon mitigation credits | ||||||
2 | covering a fractional amount of a carbon-free energy | ||||||
3 | resource's projected output. | ||||||
4 | (B) Each carbon-free energy resource that intends to | ||||||
5 | participate in a procurement shall be required to submit | ||||||
6 | to the Agency the following information for the resource | ||||||
7 | on or before the date established by the Agency: | ||||||
8 | (i) the in-service date and remaining useful life | ||||||
9 | of the carbon-free energy resource; | ||||||
10 | (ii) the amount of power generated annually for | ||||||
11 | each of the past 10 years, which shall be used to | ||||||
12 | determine the capability of each facility; | ||||||
13 | (iii) a commitment to be reflected in any contract | ||||||
14 | entered into pursuant to this subsection (d-10) to | ||||||
15 | continue operating the carbon-free energy resource at | ||||||
16 | a capacity factor of at least 88% annually on average | ||||||
17 | for the duration of the contract or contracts executed | ||||||
18 | under the procurement held under this subsection | ||||||
19 | (d-10), except in an instance described in | ||||||
20 | subparagraph (E) of paragraph (1) of subsection (d-5) | ||||||
21 | of this Section or made impracticable as a result of | ||||||
22 | compliance with law or regulation; | ||||||
23 | (iv) financial need and the risk of loss of the | ||||||
24 | environmental benefits of such resource, which shall | ||||||
25 | include the following information: | ||||||
26 | (I) the carbon-free energy resource's cost |
| |||||||
| |||||||
1 | projections, expressed on a per megawatt-hour | ||||||
2 | basis, over the next 5 delivery years, which shall | ||||||
3 | include the following: operation and maintenance | ||||||
4 | expenses; fully allocated overhead costs, which | ||||||
5 | shall be allocated using the methodology developed | ||||||
6 | by the Institute for Nuclear Power Operations; | ||||||
7 | fuel expenditures; nonfuel capital expenditures; | ||||||
8 | spent fuel expenditures; a return on working | ||||||
9 | capital; the cost of operational and market risks | ||||||
10 | that could be avoided by ceasing operation; and | ||||||
11 | any other costs necessary for continued | ||||||
12 | operations, provided that "necessary" means, for | ||||||
13 | purposes of this subitem (I), that the costs could | ||||||
14 | reasonably be avoided only by ceasing operations | ||||||
15 | of the carbon-free energy resource; and | ||||||
16 | (II) the carbon-free energy resource's revenue | ||||||
17 | projections, including energy, capacity, ancillary | ||||||
18 | services, any other direct State support, known or | ||||||
19 | anticipated federal attribute credits, known or | ||||||
20 | anticipated tax credits, and any other direct | ||||||
21 | federal support. | ||||||
22 | The information described in this subparagraph (B) may | ||||||
23 | be submitted on a confidential basis and shall be treated | ||||||
24 | and maintained by the Agency, the procurement | ||||||
25 | administrator, and the Commission as confidential and | ||||||
26 | proprietary and exempt from disclosure under subparagraphs |
| |||||||
| |||||||
1 | (a) and (g) of paragraph (1) of Section 7 of the Freedom of | ||||||
2 | Information Act. The Office of the Attorney General shall | ||||||
3 | have access to, and maintain the confidentiality of, such | ||||||
4 | information pursuant to Section 6.5 of the Attorney | ||||||
5 | General Act. | ||||||
6 | (C) The Agency shall solicit bids for the contracts | ||||||
7 | described in this subsection (d-10) from carbon-free | ||||||
8 | energy resources that have satisfied the requirements of | ||||||
9 | subparagraph (B) of this paragraph (3). The contracts | ||||||
10 | procured pursuant to a procurement event shall reflect, | ||||||
11 | and be subject to, the following terms, requirements, and | ||||||
12 | limitations: | ||||||
13 | (i) Contracts are for delivery of carbon | ||||||
14 | mitigation credits, and are not energy or capacity | ||||||
15 | sales contracts requiring physical delivery. Pursuant | ||||||
16 | to item (iii), contract payments shall fully deduct | ||||||
17 | the value of any monetized federal production tax | ||||||
18 | credits, credits issued pursuant to a federal clean | ||||||
19 | energy standard, and other federal credits if | ||||||
20 | applicable. | ||||||
21 | (ii) Contracts for carbon mitigation credits shall | ||||||
22 | commence with the delivery year beginning on June 1, | ||||||
23 | 2022 and shall be for a term of 5 delivery years | ||||||
24 | concluding on May 31, 2027. | ||||||
25 | (iii) The price per carbon mitigation credit to be | ||||||
26 | paid under a contract for a given delivery year shall |
| |||||||
| |||||||
1 | be equal to an accepted bid price less the sum of: | ||||||
2 | (I) one of the following energy price indices, | ||||||
3 | selected by the bidder at the time of the bid for | ||||||
4 | the term of the contract: | ||||||
5 | (aa) the weighted-average hourly day-ahead | ||||||
6 | price for the applicable delivery year at the | ||||||
7 | busbar of all resources procured pursuant to | ||||||
8 | this subsection (d-10), weighted by actual | ||||||
9 | production from the resources; or | ||||||
10 | (bb) the projected energy price for the | ||||||
11 | PJM Interconnection, LLC Northern Illinois Hub | ||||||
12 | for the applicable delivery year determined | ||||||
13 | according to subitem (aa) of item (iii) of | ||||||
14 | subparagraph (B) of paragraph (1) of | ||||||
15 | subsection (d-5). | ||||||
16 | (II) the Base Residual Auction Capacity Price | ||||||
17 | for the ComEd zone as determined by PJM | ||||||
18 | Interconnection, LLC, divided by 24 hours per day, | ||||||
19 | for the applicable delivery year for the first 3 | ||||||
20 | delivery years, and then any subsequent delivery | ||||||
21 | years unless the PJM Interconnection, LLC applies | ||||||
22 | the Minimum Offer Price Rule to participating | ||||||
23 | carbon-free energy resources because they supply | ||||||
24 | carbon mitigation credits pursuant to this Section | ||||||
25 | at which time, upon notice by the carbon-free | ||||||
26 | energy resource to the Commission and subject to |
| |||||||
| |||||||
1 | the Commission's confirmation, the value under | ||||||
2 | this subitem shall be zero, as further described | ||||||
3 | in the carbon mitigation credit procurement plan; | ||||||
4 | and | ||||||
5 | (III) any value of monetized federal tax | ||||||
6 | credits, direct payments, or similar subsidy | ||||||
7 | provided to the carbon-free energy resource from | ||||||
8 | any unit of government that is not already | ||||||
9 | reflected in energy prices. | ||||||
10 | If the price-per-megawatt-hour calculation | ||||||
11 | performed under item (iii) of this subparagraph (C) | ||||||
12 | for a given delivery year results in a net positive | ||||||
13 | value, then the electric utility counterparty to the | ||||||
14 | contract shall multiply such net value by the | ||||||
15 | applicable contract quantity and remit the amount to | ||||||
16 | the supplier. | ||||||
17 | To protect retail customers from retail rate | ||||||
18 | impacts that may arise upon the initiation of carbon | ||||||
19 | policy changes, if the price-per-megawatt-hour | ||||||
20 | calculation performed under item (iii) of this | ||||||
21 | subparagraph (C) for a given delivery year results in | ||||||
22 | a net negative value, then the supplier counterparty | ||||||
23 | to the contract shall multiply such net value by the | ||||||
24 | applicable contract quantity and remit such amount to | ||||||
25 | the electric utility counterparty. The electric | ||||||
26 | utility shall reflect such amounts remitted by |
| |||||||
| |||||||
1 | suppliers as a credit on its retail customer bills as | ||||||
2 | soon as practicable. | ||||||
3 | (iv) to ensure that retail customers in Northern | ||||||
4 | Illinois do not pay more for carbon mitigation credits | ||||||
5 | than the value such credits provide, and | ||||||
6 | notwithstanding the provisions of this subsection | ||||||
7 | (d-10), the Agency shall not accept bids for contracts | ||||||
8 | that exceed a customer protection cap equal to the | ||||||
9 | baseline costs of carbon-free energy resources. | ||||||
10 | The baseline costs for the applicable year shall | ||||||
11 | be the following: | ||||||
12 | (I) For the delivery year beginning June 1, | ||||||
13 | 2022, the baseline costs shall be an amount equal | ||||||
14 | to $30.30 per megawatt-hour. | ||||||
15 | (II) For the delivery year beginning June 1, | ||||||
16 | 2023, the baseline costs shall be an amount equal | ||||||
17 | to $32.50 per megawatt-hour. | ||||||
18 | (III) For the delivery year beginning June 1, | ||||||
19 | 2024, the baseline costs shall be an amount equal | ||||||
20 | to $33.43 per megawatt-hour. | ||||||
21 | (IV) For the delivery year beginning June 1, | ||||||
22 | 2025, the baseline costs shall be an amount equal | ||||||
23 | to $33.50 per megawatt-hour. | ||||||
24 | (V) For the delivery year beginning June 1, | ||||||
25 | 2026, the baseline costs shall be an amount equal | ||||||
26 | to $34.50 per megawatt-hour. |
| |||||||
| |||||||
1 | An Environmental Protection Agency consultant | ||||||
2 | forecast, included in a report issued April 14, 2021, | ||||||
3 | projects that a carbon-free energy resource has the | ||||||
4 | opportunity to earn on average approximately $30.28 | ||||||
5 | per megawatt-hour, for the sale of energy and capacity | ||||||
6 | during the time period between 2022 and 2027. | ||||||
7 | Therefore, the sale of carbon mitigation credits | ||||||
8 | provides the opportunity to receive an additional | ||||||
9 | amount per megawatt-hour in addition to the projected | ||||||
10 | prices for energy and capacity. | ||||||
11 | Although actual energy and capacity prices may | ||||||
12 | vary from year-to-year, the General Assembly finds | ||||||
13 | that this customer protection cap will help ensure | ||||||
14 | that the cost of carbon mitigation credits will be | ||||||
15 | less than its value, based upon the social cost of | ||||||
16 | carbon identified in the Technical Support Document | ||||||
17 | issued in February 2021 by the U.S. Interagency | ||||||
18 | Working Group on Social Cost of Greenhouse Gases and | ||||||
19 | the PJM Interconnection, LLC carbon dioxide marginal | ||||||
20 | emission rate for 2020, and that a carbon-free energy | ||||||
21 | resource receiving payment for carbon mitigation | ||||||
22 | credits receives no more than necessary to keep those | ||||||
23 | units in operation. | ||||||
24 | (D) No later than 7 days after the effective date of | ||||||
25 | this amendatory Act of the 102nd General Assembly, the | ||||||
26 | Agency shall publish its proposed carbon mitigation credit |
| |||||||
| |||||||
1 | procurement plan. The Plan shall provide that winning bids | ||||||
2 | shall be selected by taking into consideration which | ||||||
3 | resources best match public interest criteria that | ||||||
4 | include, but are not limited to, minimizing carbon dioxide | ||||||
5 | emissions that result from electricity consumed in | ||||||
6 | Illinois and minimizing sulfur dioxide, nitrogen oxide, | ||||||
7 | and particulate matter emissions that adversely affect the | ||||||
8 | citizens of this State. The selection of winning bids | ||||||
9 | shall also take into account the incremental environmental | ||||||
10 | benefits resulting from the procurement or procurements, | ||||||
11 | such as any existing environmental benefits that are | ||||||
12 | preserved by a procurement held under this subsection | ||||||
13 | (d-10) and would cease to exist if the procurement were | ||||||
14 | not held, including the preservation of carbon-free energy | ||||||
15 | resources. For those bidders having the same public | ||||||
16 | interest criteria score, the relative ranking of such | ||||||
17 | bidders shall be determined by price. The Plan shall | ||||||
18 | describe in detail how each public interest factor shall | ||||||
19 | be considered and weighted in the bid selection process to | ||||||
20 | ensure that the public interest criteria are applied to | ||||||
21 | the procurement. The Plan shall, to the extent practical | ||||||
22 | and permissible by federal law, ensure that successful | ||||||
23 | bidders make commercially reasonable efforts to apply for | ||||||
24 | federal tax credits, direct payments, or similar subsidy | ||||||
25 | programs that support carbon-free generation and for which | ||||||
26 | the successful bidder is eligible. Upon publishing of the |
| |||||||
| |||||||
1 | carbon mitigation credit procurement plan, copies of the | ||||||
2 | plan shall be posted and made publicly available on the | ||||||
3 | Agency's website. All interested parties shall have 7 days | ||||||
4 | following the date of posting to provide comment to the | ||||||
5 | Agency on the plan. All comments shall be posted to the | ||||||
6 | Agency's website. Following the end of the comment period, | ||||||
7 | but no more than 19 days later than the effective date of | ||||||
8 | this amendatory Act of the 102nd General Assembly, the | ||||||
9 | Agency shall revise the plan as necessary based on the | ||||||
10 | comments received and file its carbon mitigation credit | ||||||
11 | procurement plan with the Commission. | ||||||
12 | (E) If the Commission determines that the plan is | ||||||
13 | likely to result in the procurement of cost-effective | ||||||
14 | carbon mitigation credits, then the Commission shall, | ||||||
15 | after notice and hearing and opportunity for comment, but | ||||||
16 | no later than 42 days after the Agency filed the plan, | ||||||
17 | approve the plan or approve it with modification. For | ||||||
18 | purposes of this subsection (d-10), "cost-effective" means | ||||||
19 | carbon mitigation credits that are procured from | ||||||
20 | carbon-free energy resources at prices that are within the | ||||||
21 | limits specified in this paragraph (3). As part of the | ||||||
22 | Commission's review and acceptance or rejection of the | ||||||
23 | procurement results, the Commission shall, in its public | ||||||
24 | notice of successful bidders: | ||||||
25 | (i) identify how the selected carbon-free energy | ||||||
26 | resources satisfy the public interest criteria |
| |||||||
| |||||||
1 | described in this paragraph (3) of minimizing carbon | ||||||
2 | dioxide emissions that result from electricity | ||||||
3 | consumed in Illinois and minimizing sulfur dioxide, | ||||||
4 | nitrogen oxide, and particulate matter emissions that | ||||||
5 | adversely affect the citizens of this State; | ||||||
6 | (ii) specifically address how the selection of | ||||||
7 | carbon-free energy resources takes into account the | ||||||
8 | incremental environmental benefits resulting from the | ||||||
9 | procurement, including any existing environmental | ||||||
10 | benefits that are preserved by the procurements held | ||||||
11 | under this amendatory Act of the 102nd General | ||||||
12 | Assembly and would have ceased to exist if the | ||||||
13 | procurements had not been held, such as the | ||||||
14 | preservation of carbon-free energy resources; | ||||||
15 | (iii) quantify the environmental benefit of | ||||||
16 | preserving the carbon-free energy resources procured | ||||||
17 | pursuant to this subsection (d-10), including the | ||||||
18 | following: | ||||||
19 | (I) an assessment value of avoided greenhouse | ||||||
20 | gas emissions measured as the product of the | ||||||
21 | carbon-free energy resources' output over the | ||||||
22 | contract term, using generally accepted | ||||||
23 | methodologies for the valuation of avoided | ||||||
24 | emissions; and | ||||||
25 | (II) an assessment of costs of replacement | ||||||
26 | with other carbon-free energy resources and |
| |||||||
| |||||||
1 | renewable energy resources, including wind and | ||||||
2 | photovoltaic generation, based upon an assessment | ||||||
3 | of the prices paid for renewable energy credits | ||||||
4 | through programs and procurements conducted | ||||||
5 | pursuant to subsection (c) of Section 1-75 of this | ||||||
6 | Act, and the additional storage necessary to | ||||||
7 | produce the same or similar capability of matching | ||||||
8 | customer usage patterns. | ||||||
9 | (F) The procurements described in this paragraph (3), | ||||||
10 | including, but not limited to, the execution of all | ||||||
11 | contracts procured, shall be completed no later than | ||||||
12 | December 3, 2021. The procurement and plan approval | ||||||
13 | processes required by this paragraph (3) shall be | ||||||
14 | conducted in conjunction with the procurement and plan | ||||||
15 | approval processes required by Section 16-111.5 of the | ||||||
16 | Public Utilities Act, to the extent practicable. However, | ||||||
17 | the Agency and Commission may, as appropriate, modify the | ||||||
18 | various dates and timelines under this subparagraph and | ||||||
19 | subparagraphs (D) and (E) of this paragraph (3) to meet | ||||||
20 | the December 3, 2021 contract execution deadline. | ||||||
21 | Following the completion of such procurements, and | ||||||
22 | consistent with this paragraph (3), the Agency shall | ||||||
23 | calculate the payments to be made under each contract in a | ||||||
24 | timely fashion. | ||||||
25 | (F-1) Costs incurred by the electric utility pursuant | ||||||
26 | to a contract authorized by this subsection (d-10) shall |
| |||||||
| |||||||
1 | be deemed prudently incurred and reasonable in amount, and | ||||||
2 | the electric utility shall be entitled to full cost | ||||||
3 | recovery pursuant to a tariff or tariffs filed with the | ||||||
4 | Commission. | ||||||
5 | (G) The counterparty electric utility shall retire all | ||||||
6 | carbon mitigation credits used to comply with the | ||||||
7 | requirements of this subsection (d-10). | ||||||
8 | (H) If a carbon-free energy resource is sold to | ||||||
9 | another owner, the rights, obligations, and commitments | ||||||
10 | under this subsection (d-10) shall continue to the | ||||||
11 | subsequent owner. | ||||||
12 | (I) This subsection (d-10) shall become inoperative on | ||||||
13 | January 1, 2028. | ||||||
14 | (e) The draft procurement plans are subject to public | ||||||
15 | comment, as required by Section 16-111.5 of the Public | ||||||
16 | Utilities Act. | ||||||
17 | (f) The Agency shall submit the final procurement plan to | ||||||
18 | the Commission. The Agency shall revise a procurement plan if | ||||||
19 | the Commission determines that it does not meet the standards | ||||||
20 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
21 | (g) The Agency shall assess fees to each affected utility | ||||||
22 | to recover the costs incurred in preparation of the annual | ||||||
23 | procurement plan for the utility. | ||||||
24 | (h) The Agency shall assess fees to each bidder to recover | ||||||
25 | the costs incurred in connection with a competitive | ||||||
26 | procurement process.
|
| |||||||
| |||||||
1 | (i) A renewable energy credit, carbon emission credit, or | ||||||
2 | zero emission credit , or carbon mitigation credit can only be | ||||||
3 | used once to comply with a single portfolio or other standard | ||||||
4 | as set forth in subsection (c), subsection (d), or subsection | ||||||
5 | (d-5) of this Section, respectively. A renewable energy | ||||||
6 | credit, carbon emission credit, or zero emission credit , or | ||||||
7 | carbon mitigation credit cannot be used to satisfy the | ||||||
8 | requirements of more than one standard. If more than one type | ||||||
9 | of credit is issued for the same megawatt hour of energy, only | ||||||
10 | one credit can be used to satisfy the requirements of a single | ||||||
11 | standard. After such use, the credit must be retired together | ||||||
12 | with any other credits issued for the same megawatt hour of | ||||||
13 | energy. | ||||||
14 | (Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19; | ||||||
15 | 101-113, eff. 1-1-20 .)
| ||||||
16 | Section 10. The Public Utilities Act is amended by | ||||||
17 | changing Sections 16-108, 16-111.5, and 16-127 as follows:
| ||||||
18 | (220 ILCS 5/16-108)
| ||||||
19 | Sec. 16-108. Recovery of costs associated with the
| ||||||
20 | provision of delivery and other services. | ||||||
21 | (a) An electric utility shall file a delivery services
| ||||||
22 | tariff with the Commission at least 210 days prior to the date
| ||||||
23 | that it is required to begin offering such services pursuant
| ||||||
24 | to this Act. An electric utility shall provide the components
|
| |||||||
| |||||||
1 | of delivery services that are subject to the jurisdiction of
| ||||||
2 | the Federal Energy Regulatory Commission at the same prices,
| ||||||
3 | terms and conditions set forth in its applicable tariff as
| ||||||
4 | approved or allowed into effect by that Commission. The
| ||||||
5 | Commission shall otherwise have the authority pursuant to | ||||||
6 | Article IX to review,
approve, and modify the prices, terms | ||||||
7 | and conditions of those
components of delivery services not | ||||||
8 | subject to the
jurisdiction of the Federal Energy Regulatory | ||||||
9 | Commission,
including the authority to determine the extent to | ||||||
10 | which such
delivery services should be offered on an unbundled | ||||||
11 | basis. In making any such
determination the Commission shall | ||||||
12 | consider, at a minimum, the effect of
additional unbundling on | ||||||
13 | (i) the objective of just and reasonable rates, (ii)
electric | ||||||
14 | utility employees, and (iii) the development of competitive | ||||||
15 | markets
for electric energy services in Illinois.
| ||||||
16 | (b) The Commission shall enter an order approving, or
| ||||||
17 | approving as modified, the delivery services tariff no later
| ||||||
18 | than 30 days prior to the date on which the electric utility
| ||||||
19 | must commence offering such services. The Commission may
| ||||||
20 | subsequently modify such tariff pursuant to this Act.
| ||||||
21 | (c) The electric utility's
tariffs shall define the | ||||||
22 | classes of its customers for purposes
of delivery services | ||||||
23 | charges. Delivery services shall be priced and made
available | ||||||
24 | to all retail customers electing delivery services in each | ||||||
25 | such class
on a nondiscriminatory basis regardless of whether | ||||||
26 | the retail customer chooses
the electric utility, an affiliate |
| |||||||
| |||||||
1 | of the electric utility, or another entity
as its supplier of | ||||||
2 | electric power and energy. Charges for delivery services
shall | ||||||
3 | be cost based,
and shall allow the electric utility to recover | ||||||
4 | the costs of
providing delivery services through its charges | ||||||
5 | to its
delivery service customers that use the facilities and
| ||||||
6 | services associated with such costs.
Such costs shall include | ||||||
7 | the
costs of owning, operating and maintaining transmission | ||||||
8 | and
distribution facilities. The Commission shall also be
| ||||||
9 | authorized to consider whether, and if so to what extent, the
| ||||||
10 | following costs are appropriately included in the electric
| ||||||
11 | utility's delivery services rates: (i) the costs of that
| ||||||
12 | portion of generation facilities used for the production and
| ||||||
13 | absorption of reactive power in order that retail customers
| ||||||
14 | located in the electric utility's service area can receive
| ||||||
15 | electric power and energy from suppliers other than the
| ||||||
16 | electric utility, and (ii) the costs associated with the use
| ||||||
17 | and redispatch of generation facilities to mitigate
| ||||||
18 | constraints on the transmission or distribution system in
| ||||||
19 | order that retail customers located in the electric utility's
| ||||||
20 | service area can receive electric power and energy from
| ||||||
21 | suppliers other than the electric utility. Nothing in this
| ||||||
22 | subsection shall be construed as directing the Commission to
| ||||||
23 | allocate any of the costs described in (i) or (ii) that are
| ||||||
24 | found to be appropriately included in the electric utility's
| ||||||
25 | delivery services rates to any particular customer group or
| ||||||
26 | geographic area in setting delivery services rates.
|
| |||||||
| |||||||
1 | (d) The Commission shall establish charges, terms and
| ||||||
2 | conditions for delivery services that are just and reasonable
| ||||||
3 | and shall take into account customer impacts when establishing
| ||||||
4 | such charges. In establishing charges, terms and conditions
| ||||||
5 | for delivery services, the Commission shall take into account
| ||||||
6 | voltage level differences. A retail customer shall have the
| ||||||
7 | option to request to purchase electric service at any delivery
| ||||||
8 | service voltage reasonably and technically feasible from the
| ||||||
9 | electric facilities serving that customer's premises provided
| ||||||
10 | that there are no significant adverse impacts upon system
| ||||||
11 | reliability or system efficiency. A retail customer shall
also | ||||||
12 | have the option to request to purchase electric service
at any | ||||||
13 | point of delivery that is reasonably and technically
feasible | ||||||
14 | provided that there are no significant adverse
impacts on | ||||||
15 | system reliability or efficiency. Such requests
shall not be | ||||||
16 | unreasonably denied.
| ||||||
17 | (e) Electric utilities shall recover the costs of
| ||||||
18 | installing, operating or maintaining facilities for the
| ||||||
19 | particular benefit of one or more delivery services customers,
| ||||||
20 | including without limitation any costs incurred in complying
| ||||||
21 | with a customer's request to be served at a different voltage
| ||||||
22 | level, directly from the retail customer or customers for
| ||||||
23 | whose benefit the costs were incurred, to the extent such
| ||||||
24 | costs are not recovered through the charges referred to in
| ||||||
25 | subsections (c) and (d) of this Section.
| ||||||
26 | (f) An electric utility shall be entitled but not
required |
| |||||||
| |||||||
1 | to implement transition charges in conjunction with
the | ||||||
2 | offering of delivery services pursuant to Section 16-104.
If | ||||||
3 | an electric utility implements transition charges, it shall | ||||||
4 | implement such
charges for all delivery services customers and | ||||||
5 | for all customers described in
subsection (h), but shall not | ||||||
6 | implement transition charges for power and
energy that a | ||||||
7 | retail customer takes from cogeneration or self-generation
| ||||||
8 | facilities located on that retail customer's premises, if such | ||||||
9 | facilities meet
the following criteria:
| ||||||
10 | (i) the cogeneration or self-generation facilities | ||||||
11 | serve a single retail
customer and are located on that | ||||||
12 | retail customer's premises (for purposes of
this | ||||||
13 | subparagraph and subparagraph (ii), an industrial or | ||||||
14 | manufacturing retail
customer and a third party contractor | ||||||
15 | that is served by such industrial or
manufacturing | ||||||
16 | customer through such retail customer's own electrical
| ||||||
17 | distribution facilities under the circumstances described | ||||||
18 | in subsection (vi) of
the definition of "alternative | ||||||
19 | retail electric supplier" set forth in Section
16-102, | ||||||
20 | shall be considered a single retail customer);
| ||||||
21 | (ii) the cogeneration or self-generation facilities | ||||||
22 | either (A) are sized
pursuant to generally accepted | ||||||
23 | engineering standards for the retail customer's
electrical | ||||||
24 | load at that premises (taking into account standby or | ||||||
25 | other
reliability considerations related to that retail | ||||||
26 | customer's operations at that
site) or (B) if the facility |
| |||||||
| |||||||
1 | is a cogeneration facility located on the retail
| ||||||
2 | customer's premises, the retail customer is the thermal | ||||||
3 | host for that facility
and the facility has been designed | ||||||
4 | to meet that retail customer's thermal
energy requirements | ||||||
5 | resulting in electrical output beyond that retail
| ||||||
6 | customer's electrical demand at that premises, comply with | ||||||
7 | the operating and
efficiency standards applicable to | ||||||
8 | "qualifying facilities" specified in title
18 Code of | ||||||
9 | Federal Regulations Section 292.205 as in effect on the | ||||||
10 | effective
date of this amendatory Act of 1999;
| ||||||
11 | (iii) the retail customer on whose premises the | ||||||
12 | facilities are located
either has an exclusive right to | ||||||
13 | receive, and corresponding obligation to pay
for, all of | ||||||
14 | the electrical capacity of the facility, or in the case of | ||||||
15 | a
cogeneration facility that has been designed to meet the | ||||||
16 | retail customer's
thermal energy requirements at that | ||||||
17 | premises, an identified amount of the
electrical capacity | ||||||
18 | of the facility, over a minimum 5-year period; and
| ||||||
19 | (iv) if the cogeneration facility is sized for the
| ||||||
20 | retail customer's thermal load at that premises but | ||||||
21 | exceeds the electrical
load, any sales of excess power or | ||||||
22 | energy are made only at wholesale, are
subject to the | ||||||
23 | jurisdiction of the Federal Energy Regulatory Commission, | ||||||
24 | and
are not for the purpose of circumventing the | ||||||
25 | provisions of this subsection (f).
| ||||||
26 | If a generation facility located at a retail customer's |
| |||||||
| |||||||
1 | premises does not meet
the above criteria, an electric utility | ||||||
2 | implementing
transition charges shall implement a transition | ||||||
3 | charge until December 31, 2006
for any power and energy taken | ||||||
4 | by such retail customer from such facility as if
such power and | ||||||
5 | energy had been delivered by the electric utility. Provided,
| ||||||
6 | however, that an industrial retail customer that is taking | ||||||
7 | power from a
generation facility that does not meet the above | ||||||
8 | criteria but that is located
on such customer's premises will | ||||||
9 | not be subject to a transition charge for the
power and energy | ||||||
10 | taken by such retail customer from such generation facility if
| ||||||
11 | the facility does not serve any other retail customer and | ||||||
12 | either was installed
on behalf of the customer and for its own | ||||||
13 | use prior to January 1, 1997, or is
both predominantly fueled | ||||||
14 | by byproducts of such customer's manufacturing
process at such | ||||||
15 | premises and sells or offers an average of 300 megawatts or
| ||||||
16 | more of electricity produced from such generation facility | ||||||
17 | into the wholesale
market.
Such charges
shall be calculated as | ||||||
18 | provided in Section
16-102, and shall be collected
on each | ||||||
19 | kilowatt-hour delivered under a
delivery services tariff to a | ||||||
20 | retail customer from the date
the customer first takes | ||||||
21 | delivery services until December 31,
2006 except as provided | ||||||
22 | in subsection (h) of this Section.
Provided, however, that an | ||||||
23 | electric utility, other than an electric utility
providing | ||||||
24 | service to at least 1,000,000 customers in this State on | ||||||
25 | January 1,
1999,
shall be entitled to petition for
entry of an | ||||||
26 | order by the Commission authorizing the electric utility to
|
| |||||||
| |||||||
1 | implement transition charges for an additional period ending | ||||||
2 | no later than
December 31, 2008. The electric utility shall | ||||||
3 | file its petition with
supporting evidence no earlier than 16 | ||||||
4 | months, and no later than 12 months,
prior to December 31, | ||||||
5 | 2006. The Commission shall hold a hearing on the
electric | ||||||
6 | utility's petition and shall enter its order no later than 8 | ||||||
7 | months
after the petition is filed. The Commission shall | ||||||
8 | determine whether and to
what extent the electric utility | ||||||
9 | shall be authorized to implement transition
charges for an | ||||||
10 | additional period. The Commission may authorize the electric
| ||||||
11 | utility to implement transition charges for some or all of the | ||||||
12 | additional
period, and shall determine the mitigation factors | ||||||
13 | to be used in implementing
such transition charges; provided, | ||||||
14 | that the Commission shall not authorize
mitigation factors | ||||||
15 | less than 110% of those in effect during the 12 months ended
| ||||||
16 | December 31, 2006. In making its determination, the Commission | ||||||
17 | shall consider
the following factors: the necessity to | ||||||
18 | implement transition charges for an
additional period in order | ||||||
19 | to maintain the financial integrity of the electric
utility; | ||||||
20 | the prudence of the electric utility's actions in reducing its | ||||||
21 | costs
since the effective date of this amendatory Act of 1997; | ||||||
22 | the ability of the
electric utility to provide safe, adequate | ||||||
23 | and reliable service to retail
customers in its service area; | ||||||
24 | and the impact on competition of allowing the
electric utility | ||||||
25 | to implement transition charges for the additional period.
| ||||||
26 | (g) The electric utility shall file tariffs that
establish |
| |||||||
| |||||||
1 | the transition charges to be paid by each class of
customers to | ||||||
2 | the electric utility in conjunction with the
provision of | ||||||
3 | delivery services. The electric utility's tariffs
shall define | ||||||
4 | the classes of its customers for purposes of
calculating | ||||||
5 | transition charges. The electric utility's tariffs
shall | ||||||
6 | provide for the calculation of transition charges on a
| ||||||
7 | customer-specific basis for any retail customer whose average
| ||||||
8 | monthly maximum electrical demand on the electric utility's
| ||||||
9 | system during the 6 months with the customer's highest monthly
| ||||||
10 | maximum electrical demands equals or exceeds 3.0 megawatts for
| ||||||
11 | electric utilities having more than 1,000,000 customers, and
| ||||||
12 | for other electric utilities for any customer that has an
| ||||||
13 | average monthly maximum electrical demand on the electric
| ||||||
14 | utility's system of one megawatt or more, and (A) for which
| ||||||
15 | there exists data on the customer's usage during the 3 years
| ||||||
16 | preceding the date that the customer became eligible to take
| ||||||
17 | delivery services, or (B) for which there does not exist data
| ||||||
18 | on the customer's usage during the 3 years preceding the date
| ||||||
19 | that the customer became eligible to take delivery services,
| ||||||
20 | if in the electric utility's reasonable judgment there exists
| ||||||
21 | comparable usage information or a sufficient basis to develop
| ||||||
22 | such information, and further provided that the electric
| ||||||
23 | utility can require customers for which an individual
| ||||||
24 | calculation is made to sign contracts that set forth the
| ||||||
25 | transition charges to be paid by the customer to the electric
| ||||||
26 | utility pursuant to the tariff.
|
| |||||||
| |||||||
1 | (h) An electric utility shall also be entitled to file
| ||||||
2 | tariffs that allow it to collect transition charges from
| ||||||
3 | retail customers in the electric utility's service area that
| ||||||
4 | do not take delivery services but that take electric power or
| ||||||
5 | energy from an alternative retail electric supplier or from an
| ||||||
6 | electric utility other than the electric utility in whose
| ||||||
7 | service area the customer is located. Such charges shall be
| ||||||
8 | calculated, in accordance with the definition of transition
| ||||||
9 | charges in Section 16-102, for the period of time that the
| ||||||
10 | customer would be obligated to pay transition charges if it
| ||||||
11 | were taking delivery services, except that no deduction for
| ||||||
12 | delivery services revenues shall be made in such calculation,
| ||||||
13 | and usage data from the customer's class shall be used where
| ||||||
14 | historical usage data is not available for the individual
| ||||||
15 | customer. The customer shall be obligated to pay such charges
| ||||||
16 | on a lump sum basis on or before the date on which the
customer | ||||||
17 | commences to take service from the alternative retail
electric | ||||||
18 | supplier or other electric utility, provided, that
the | ||||||
19 | electric utility in whose service area the customer is
located | ||||||
20 | shall offer the customer the option of signing a
contract | ||||||
21 | pursuant to which the customer pays such charges
ratably over | ||||||
22 | the period in which the charges would otherwise
have applied.
| ||||||
23 | (i) An electric utility shall be entitled to add to the
| ||||||
24 | bills of delivery services customers charges pursuant to
| ||||||
25 | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||||||
26 | and Section
16-114 of this Act, Section 5-5 of the Electricity |
| |||||||
| |||||||
1 | Infrastructure Maintenance
Fee Law, Section 6-5 of the | ||||||
2 | Renewable Energy, Energy Efficiency, and Coal
Resources | ||||||
3 | Development Law of 1997, and Section 13 of the Energy | ||||||
4 | Assistance Act.
| ||||||
5 | (j) If a retail customer that obtains electric power and
| ||||||
6 | energy from cogeneration or self-generation facilities
| ||||||
7 | installed for its own use on or before January 1, 1997,
| ||||||
8 | subsequently takes service from an alternative retail electric
| ||||||
9 | supplier or an electric utility other than the electric
| ||||||
10 | utility in whose service area the customer is located for any
| ||||||
11 | portion of the customer's electric power and energy
| ||||||
12 | requirements formerly obtained from those facilities | ||||||
13 | (including that amount
purchased from the utility in lieu of | ||||||
14 | such generation and not as standby power
purchases, under a | ||||||
15 | cogeneration displacement tariff in effect as of the
effective | ||||||
16 | date of this amendatory Act of 1997), the
transition charges | ||||||
17 | otherwise applicable pursuant to subsections (f), (g), or
(h) | ||||||
18 | of this Section shall not be applicable
in any year to that | ||||||
19 | portion of the customer's electric power
and energy | ||||||
20 | requirements formerly obtained from those
facilities, | ||||||
21 | provided, that for purposes of this subsection
(j), such | ||||||
22 | portion shall not exceed the average number of
kilowatt-hours | ||||||
23 | per year obtained from the cogeneration or
self-generation | ||||||
24 | facilities during the 3 years prior to the
date on which the | ||||||
25 | customer became eligible for delivery
services, except as | ||||||
26 | provided in subsection (f) of Section
16-110.
|
| |||||||
| |||||||
1 | (k) The electric utility shall be entitled to recover | ||||||
2 | through tariffed charges all of the costs associated with the | ||||||
3 | purchase of zero emission credits from zero emission | ||||||
4 | facilities to meet the requirements of subsection (d-5) of | ||||||
5 | Section 1-75 of the Illinois Power Agency Act and all of the | ||||||
6 | costs associated with the purchase of carbon mitigation | ||||||
7 | credits from carbon-free energy resources to meet the | ||||||
8 | requirements of subsection (d-10) of Section 1-75 of the | ||||||
9 | Illinois Power Agency Act . Such costs shall include the costs | ||||||
10 | of procuring the zero emission credits and carbon mitigation | ||||||
11 | credits from carbon-free energy resources , as well as the | ||||||
12 | reasonable costs that the utility incurs as part of the | ||||||
13 | procurement processes and to implement and comply with plans | ||||||
14 | and processes approved by the Commission under subsections | ||||||
15 | such subsection (d-5) and (d-10) . The costs shall be allocated | ||||||
16 | across all retail customers through a single, uniform cents | ||||||
17 | per kilowatt-hour charge applicable to all retail customers, | ||||||
18 | which shall appear as a separate line item on each customer's | ||||||
19 | bill. Beginning June 1, 2017, the electric utility shall be | ||||||
20 | entitled to recover through tariffed charges all of the costs | ||||||
21 | associated with the purchase of renewable energy resources to | ||||||
22 | meet the renewable energy resource standards of subsection (c) | ||||||
23 | of Section 1-75 of the Illinois Power Agency Act, under | ||||||
24 | procurement plans as approved in accordance with that Section | ||||||
25 | and Section 16-111.5 of this Act. Such costs shall include the | ||||||
26 | costs of procuring the renewable energy resources, as well as |
| |||||||
| |||||||
1 | the reasonable costs that the utility incurs as part of the | ||||||
2 | procurement processes and to implement and comply with plans | ||||||
3 | and processes approved by the Commission under such Sections. | ||||||
4 | The costs associated with the purchase of renewable energy | ||||||
5 | resources shall be allocated across all retail customers in | ||||||
6 | proportion to the amount of renewable energy resources the | ||||||
7 | utility procures for such customers through a single, uniform | ||||||
8 | cents per kilowatt-hour charge applicable to such retail | ||||||
9 | customers, which shall appear as a separate line item on each | ||||||
10 | such customer's bill. | ||||||
11 | Notwithstanding whether the Commission has approved the | ||||||
12 | initial long-term renewable resources procurement plan as of | ||||||
13 | June 1, 2017, an electric utility shall place new tariffed | ||||||
14 | charges into effect beginning with the June 2017 monthly | ||||||
15 | billing period, to the extent practicable, to begin recovering | ||||||
16 | the costs of procuring renewable energy resources, as those | ||||||
17 | charges are calculated under the limitations described in | ||||||
18 | subparagraph (E) of paragraph (1) of subsection (c) of Section | ||||||
19 | 1-75 of the Illinois Power Agency Act. Notwithstanding the | ||||||
20 | date on which the utility places such new tariffed charges | ||||||
21 | into effect, the utility shall be permitted to collect the | ||||||
22 | charges under such tariff as if the tariff had been in effect | ||||||
23 | beginning with the first day of the June 2017 monthly billing | ||||||
24 | period. For the delivery years commencing June 1, 2017, June | ||||||
25 | 1, 2018, and June 1, 2019, and June 1, 2020, the electric | ||||||
26 | utility shall deposit into a separate interest bearing account |
| |||||||
| |||||||
1 | of a financial institution the monies collected under the | ||||||
2 | tariffed charges. Any interest earned shall be credited back | ||||||
3 | to retail customers under the reconciliation proceeding | ||||||
4 | provided for in this subsection (k), provided that the | ||||||
5 | electric utility shall first be reimbursed from the interest | ||||||
6 | for the administrative costs that it incurs to administer and | ||||||
7 | manage the account. Any taxes due on the funds in the account, | ||||||
8 | or interest earned on it, will be paid from the account or, if | ||||||
9 | insufficient monies are available in the account, from the | ||||||
10 | monies collected under the tariffed charges to recover the | ||||||
11 | costs of procuring renewable energy resources. Monies | ||||||
12 | deposited in the account shall be subject to the review, | ||||||
13 | reconciliation, and true-up process described in this | ||||||
14 | subsection (k) that is applicable to the funds collected and | ||||||
15 | costs incurred for the procurement of renewable energy | ||||||
16 | resources. | ||||||
17 | The electric utility shall be entitled to recover all of | ||||||
18 | the costs identified in this subsection (k) through automatic | ||||||
19 | adjustment clause tariffs applicable to all of the utility's | ||||||
20 | retail customers that allow the electric utility to adjust its | ||||||
21 | tariffed charges consistent with this subsection (k). The | ||||||
22 | determination as to whether any excess funds were collected | ||||||
23 | during a given delivery year for the purchase of renewable | ||||||
24 | energy resources, and the crediting of any excess funds back | ||||||
25 | to retail customers, shall not be made until after the close of | ||||||
26 | the delivery year, which will ensure that the maximum amount |
| |||||||
| |||||||
1 | of funds is available to implement the approved long-term | ||||||
2 | renewable resources procurement plan during a given delivery | ||||||
3 | year. The amount of excess funds credited back to retail | ||||||
4 | customers shall be reduced by an amount equal to the payment | ||||||
5 | obligations required by any contracts entered into by an | ||||||
6 | electric utility under the Adjustable Block program described | ||||||
7 | in subparagraphs (K) through (M) of paragraph (1) of | ||||||
8 | subsection (c) of Section 1-75 of the Illinois Power Agency | ||||||
9 | Act or the Illinois Solar for All Program described in | ||||||
10 | subsection (b) of Section 1-56 of the Illinois Power Agency | ||||||
11 | Act, even if such payments have not yet been made. The electric | ||||||
12 | utility's collections under such automatic adjustment clause | ||||||
13 | tariffs to recover the costs of renewable energy resources , | ||||||
14 | and zero emission credits from zero emission facilities , and | ||||||
15 | carbon mitigation credits from carbon-free energy resources | ||||||
16 | shall be subject to separate annual review, reconciliation, | ||||||
17 | and true-up against actual costs by the Commission under a | ||||||
18 | procedure that shall be specified in the electric utility's | ||||||
19 | automatic adjustment clause tariffs and that shall be approved | ||||||
20 | by the Commission in connection with its approval of such | ||||||
21 | tariffs. The procedure shall provide that any difference | ||||||
22 | between the electric utility's collections for zero emission | ||||||
23 | credits and carbon mitigation credits under the automatic | ||||||
24 | adjustment charges for an annual period and the electric | ||||||
25 | utility's actual costs of renewable energy resources and zero | ||||||
26 | emission credits from zero emission facilities and carbon |
| |||||||
| |||||||
1 | mitigation credits from carbon-free energy resources for that | ||||||
2 | same annual period shall be refunded to or collected from, as | ||||||
3 | applicable, the electric utility's retail customers in | ||||||
4 | subsequent periods. | ||||||
5 | Nothing in this subsection (k) is intended to affect, | ||||||
6 | limit, or change the right of the electric utility to recover | ||||||
7 | the costs associated with the procurement of renewable energy | ||||||
8 | resources for periods commencing before, on, or after June 1, | ||||||
9 | 2017, as otherwise provided in the Illinois Power Agency Act. | ||||||
10 | Notwithstanding anything to the contrary, the Commission | ||||||
11 | shall not conduct an annual review, reconciliation, and | ||||||
12 | true-up associated with renewable energy resources' | ||||||
13 | collections and costs for the delivery years commencing June | ||||||
14 | 1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020 , and June | ||||||
15 | 1, 2021 , and shall instead conduct a single review, | ||||||
16 | reconciliation, and true-up associated with renewable energy | ||||||
17 | resources' collections and costs for the 5-year 4-year period | ||||||
18 | beginning June 1, 2017 and ending May 31, 2022 2021 , provided | ||||||
19 | that the review, reconciliation, and true-up shall not be | ||||||
20 | initiated until after August 31, 2022 2021 . During the 5-year | ||||||
21 | 4-year period, the utility shall be permitted to collect and | ||||||
22 | retain funds under this subsection (k) and to purchase | ||||||
23 | renewable energy resources under an approved long-term | ||||||
24 | renewable resources procurement plan using those funds | ||||||
25 | regardless of the delivery year in which the funds were | ||||||
26 | collected during the 5-year 4-year period. |
| |||||||
| |||||||
1 | If the amount of funds collected during the delivery year | ||||||
2 | commencing June 1, 2017, exceeds the costs incurred during | ||||||
3 | that delivery year, then up to half of this excess amount, as | ||||||
4 | calculated on June 1, 2018, may be used to fund the programs | ||||||
5 | under subsection (b) of Section 1-56 of the Illinois Power | ||||||
6 | Agency Act in the same proportion the programs are funded | ||||||
7 | under that subsection (b). However, any amount identified | ||||||
8 | under this subsection (k) to fund programs under subsection | ||||||
9 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
10 | reduced if it exceeds the funding shortfall. For purposes of | ||||||
11 | this Section, "funding shortfall" means the difference between | ||||||
12 | $200,000,000 and the amount appropriated by the General | ||||||
13 | Assembly to the Illinois Power Agency Renewable Energy | ||||||
14 | Resources Fund during the period that commences on the | ||||||
15 | effective date of this amendatory act of the 99th General | ||||||
16 | Assembly and ends on August 1, 2018. | ||||||
17 | If the amount of funds collected during the delivery year | ||||||
18 | commencing June 1, 2018, exceeds the costs incurred during | ||||||
19 | that delivery year, then up to half of this excess amount, as | ||||||
20 | calculated on June 1, 2019, may be used to fund the programs | ||||||
21 | under subsection (b) of Section 1-56 of the Illinois Power | ||||||
22 | Agency Act in the same proportion the programs are funded | ||||||
23 | under that subsection (b). However, any amount identified | ||||||
24 | under this subsection (k) to fund programs under subsection | ||||||
25 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
26 | reduced if it exceeds the funding shortfall. |
| |||||||
| |||||||
1 | If the amount of funds collected during the delivery year | ||||||
2 | commencing June 1, 2019, exceeds the costs incurred during | ||||||
3 | that delivery year, then up to half of this excess amount, as | ||||||
4 | calculated on June 1, 2020, may be used to fund the programs | ||||||
5 | under subsection (b) of Section 1-56 of the Illinois Power | ||||||
6 | Agency Act in the same proportion the programs are funded | ||||||
7 | under that subsection (b). However, any amount identified | ||||||
8 | under this subsection (k) to fund programs under subsection | ||||||
9 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
10 | reduced if it exceeds the funding shortfall. | ||||||
11 | If the amount of funds collected during the delivery year | ||||||
12 | commencing June 1, 2020, exceeds the costs incurred during | ||||||
13 | that delivery year, then up to one-half of this excess amount, | ||||||
14 | as calculated on June 1, 2021, may be used to fund the programs | ||||||
15 | under subsection (b) of Section 1-56 of the Illinois Power | ||||||
16 | Agency Act in the same proportion the programs are funded | ||||||
17 | under that subsection (b). However, any amount identified | ||||||
18 | under this subsection (k) to fund programs under subsection | ||||||
19 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
20 | reduced if it exceeds the funding shortfall. | ||||||
21 | The funding available under this subsection (k), if any, | ||||||
22 | for the programs described under subsection (b) of Section | ||||||
23 | 1-56 of the Illinois Power Agency Act shall not reduce the | ||||||
24 | amount of funding for the programs described in subparagraph | ||||||
25 | (O) of paragraph (1) of subsection (c) of Section 1-75 of the | ||||||
26 | Illinois Power Agency Act. If funding is available under this |
| |||||||
| |||||||
1 | subsection (k) for programs described under subsection (b) of | ||||||
2 | Section 1-56 of the Illinois Power Agency Act, then the | ||||||
3 | long-term renewable resources plan shall provide for the | ||||||
4 | Agency to procure contracts in an amount that does not exceed | ||||||
5 | the funding, and the contracts approved by the Commission | ||||||
6 | shall be executed by the applicable utility or utilities. | ||||||
7 | (l) A utility that has terminated any contract executed | ||||||
8 | under subsection (d-5) or (d-10) of Section 1-75 of the | ||||||
9 | Illinois Power Agency Act shall be entitled to recover any | ||||||
10 | remaining balance associated with the purchase of zero | ||||||
11 | emission credits prior to such termination, and such utility | ||||||
12 | shall also apply a credit to its retail customer bills in the | ||||||
13 | event of any over-collection. | ||||||
14 | (m)(1) An electric utility that recovers its costs of | ||||||
15 | procuring zero emission credits from zero emission facilities | ||||||
16 | through a cents-per-kilowatthour charge under to subsection | ||||||
17 | (k) of this Section shall be subject to the requirements of | ||||||
18 | this subsection (m). Notwithstanding anything to the contrary, | ||||||
19 | such electric utility shall, beginning on April 30, 2018, and | ||||||
20 | each April 30 thereafter until April 30, 2026, calculate | ||||||
21 | whether any reduction must be applied to such | ||||||
22 | cents-per-kilowatthour charge that is paid by retail customers | ||||||
23 | of the electric utility that are exempt from subsections (a) | ||||||
24 | through (j) of Section 8-103B of this Act under subsection (l) | ||||||
25 | of Section 8-103B. Such charge shall be reduced for such | ||||||
26 | customers for the next delivery year commencing on June 1 |
| |||||||
| |||||||
1 | based on the amount necessary, if any, to limit the annual | ||||||
2 | estimated average net increase for the prior calendar year due | ||||||
3 | to the future energy investment costs to no more than 1.3% of | ||||||
4 | 5.98 cents per kilowatt-hour, which is the average amount paid | ||||||
5 | per kilowatthour for electric service during the year ending | ||||||
6 | December 31, 2015 by Illinois industrial retail customers, as | ||||||
7 | reported to the Edison Electric Institute. | ||||||
8 | The calculations required by this subsection (m) shall be | ||||||
9 | made only once for each year, and no subsequent rate impact | ||||||
10 | determinations shall be made. | ||||||
11 | (2) For purposes of this Section, "future energy | ||||||
12 | investment costs" shall be calculated by subtracting the | ||||||
13 | cents-per-kilowatthour charge identified in subparagraph (A) | ||||||
14 | of this paragraph (2) from the sum of the | ||||||
15 | cents-per-kilowatthour charges identified in subparagraph (B) | ||||||
16 | of this paragraph (2): | ||||||
17 | (A) The cents-per-kilowatthour charge identified in | ||||||
18 | the electric utility's tariff placed into effect under | ||||||
19 | Section 8-103 of the Public Utilities Act that, on | ||||||
20 | December 1, 2016, was applicable to those retail customers | ||||||
21 | that are exempt from subsections (a) through (j) of | ||||||
22 | Section 8-103B of this Act under subsection (l) of Section | ||||||
23 | 8-103B. | ||||||
24 | (B) The sum of the following cents-per-kilowatthour | ||||||
25 | charges applicable to those retail customers that are | ||||||
26 | exempt from subsections (a) through (j) of Section 8-103B |
| |||||||
| |||||||
1 | of this Act under subsection (l) of Section 8-103B, | ||||||
2 | provided that if one or more of the following charges has | ||||||
3 | been in effect and applied to such customers for more than | ||||||
4 | one calendar year, then each charge shall be equal to the | ||||||
5 | average of the charges applied over a period that | ||||||
6 | commences with the calendar year ending December 31, 2017 | ||||||
7 | and ends with the most recently completed calendar year | ||||||
8 | prior to the calculation required by this subsection (m): | ||||||
9 | (i) the cents-per-kilowatthour charge to recover | ||||||
10 | the costs incurred by the utility under subsection | ||||||
11 | (d-5) of Section 1-75 of the Illinois Power Agency | ||||||
12 | Act, adjusted for any reductions required under this | ||||||
13 | subsection (m); and | ||||||
14 | (ii) the cents-per-kilowatthour charge to recover | ||||||
15 | the costs incurred by the utility under Section | ||||||
16 | 16-107.6 of the Public Utilities Act. | ||||||
17 | If no charge was applied for a given calendar year | ||||||
18 | under item (i) or (ii) of this subparagraph (B), then the | ||||||
19 | value of the charge for that year shall be zero. | ||||||
20 | (3) If a reduction is required by the calculation | ||||||
21 | performed under this subsection (m), then the amount of the | ||||||
22 | reduction shall be multiplied by the number of years reflected | ||||||
23 | in the averages calculated under subparagraph (B) of paragraph | ||||||
24 | (2) of this subsection (m). Such reduction shall be applied to | ||||||
25 | the cents-per-kilowatthour charge that is applicable to those | ||||||
26 | retail customers that are exempt from subsections (a) through |
| |||||||
| |||||||
1 | (j) of Section 8-103B of this Act under subsection (l) of | ||||||
2 | Section 8-103B beginning with the next delivery year | ||||||
3 | commencing after the date of the calculation required by this | ||||||
4 | subsection (m). | ||||||
5 | (4) The electric utility shall file a notice with the | ||||||
6 | Commission on May 1 of 2018 and each May 1 thereafter until May | ||||||
7 | 1, 2026 containing the reduction, if any, which must be | ||||||
8 | applied for the delivery year which begins in the year of the | ||||||
9 | filing. The notice shall contain the calculations made | ||||||
10 | pursuant to this Section. By October 1 of each year beginning | ||||||
11 | in 2018, each electric utility shall notify the Commission if | ||||||
12 | it appears, based on an estimate of the calculation required | ||||||
13 | in this subsection (m), that a reduction will be required in | ||||||
14 | the next year. | ||||||
15 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
16 | (220 ILCS 5/16-111.5) | ||||||
17 | Sec. 16-111.5. Provisions relating to procurement. | ||||||
18 | (a) An electric utility that on December 31, 2005 served | ||||||
19 | at least 100,000 customers in Illinois shall procure power and | ||||||
20 | energy for its eligible retail customers in accordance with | ||||||
21 | the applicable provisions set forth in Section 1-75 of the | ||||||
22 | Illinois Power Agency Act and this Section. Beginning with the | ||||||
23 | delivery year commencing on June 1, 2017, such electric | ||||||
24 | utility shall also procure zero emission credits from zero | ||||||
25 | emission facilities in accordance with the applicable |
| |||||||
| |||||||
1 | provisions set forth in Section 1-75 of the Illinois Power | ||||||
2 | Agency Act, and, for years beginning on or after June 1, 2017, | ||||||
3 | the utility shall procure renewable energy resources in | ||||||
4 | accordance with the applicable provisions set forth in Section | ||||||
5 | 1-75 of the Illinois Power Agency Act and this Section. | ||||||
6 | Beginning with the delivery year commencing on June 1, 2022, | ||||||
7 | an electric utility serving over 3,000,000 customers shall | ||||||
8 | also procure carbon mitigation credits from carbon-free energy | ||||||
9 | resources in accordance with the applicable provisions set | ||||||
10 | forth in Section 1-75 of the Illinois Power Agency Act and this | ||||||
11 | Section. A small multi-jurisdictional electric utility that on | ||||||
12 | December 31, 2005 served less than 100,000 customers in | ||||||
13 | Illinois may elect to procure power and energy for all or a | ||||||
14 | portion of its eligible Illinois retail customers in | ||||||
15 | accordance with the applicable provisions set forth in this | ||||||
16 | Section and Section 1-75 of the Illinois Power Agency Act. | ||||||
17 | This Section shall not apply to a small multi-jurisdictional | ||||||
18 | utility until such time as a small multi-jurisdictional | ||||||
19 | utility requests the Illinois Power Agency to prepare a | ||||||
20 | procurement plan for its eligible retail customers. "Eligible | ||||||
21 | retail customers" for the purposes of this Section means those | ||||||
22 | retail customers that purchase power and energy from the | ||||||
23 | electric utility under fixed-price bundled service tariffs, | ||||||
24 | other than those retail customers whose service is declared or | ||||||
25 | deemed competitive under Section 16-113 and those other | ||||||
26 | customer groups specified in this Section, including |
| |||||||
| |||||||
1 | self-generating customers, customers electing hourly pricing, | ||||||
2 | or those customers who are otherwise ineligible for | ||||||
3 | fixed-price bundled tariff service. For those customers that | ||||||
4 | are excluded from the procurement plan's electric supply | ||||||
5 | service requirements, and the utility shall procure any supply | ||||||
6 | requirements, including capacity, ancillary services, and | ||||||
7 | hourly priced energy, in the applicable markets as needed to | ||||||
8 | serve those customers, provided that the utility may include | ||||||
9 | in its procurement plan load requirements for the load that is | ||||||
10 | associated with those retail customers whose service has been | ||||||
11 | declared or deemed competitive pursuant to Section 16-113 of | ||||||
12 | this Act to the extent that those customers are purchasing | ||||||
13 | power and energy during one of the transition periods | ||||||
14 | identified in subsection (b) of Section 16-113 of this Act. | ||||||
15 | (b) A procurement plan shall be prepared for each electric | ||||||
16 | utility consistent with the applicable requirements of the | ||||||
17 | Illinois Power Agency Act and this Section. For purposes of | ||||||
18 | this Section, Illinois electric utilities that are affiliated | ||||||
19 | by virtue of a common parent company are considered to be a | ||||||
20 | single electric utility. Small multi-jurisdictional utilities | ||||||
21 | may request a procurement plan for a portion of or all of its | ||||||
22 | Illinois load. Each procurement plan shall analyze the | ||||||
23 | projected balance of supply and demand for those retail | ||||||
24 | customers to be included in the plan's electric supply service | ||||||
25 | requirements over a 5-year period, with the first planning | ||||||
26 | year beginning on June 1 of the year following the year in |
| |||||||
| |||||||
1 | which the plan is filed. The plan shall specifically identify | ||||||
2 | the wholesale products to be procured following plan approval, | ||||||
3 | and shall follow all the requirements set forth in the Public | ||||||
4 | Utilities Act and all applicable State and federal laws, | ||||||
5 | statutes, rules, or regulations, as well as Commission orders. | ||||||
6 | Nothing in this Section precludes consideration of contracts | ||||||
7 | longer than 5 years and related forecast data. Unless | ||||||
8 | specified otherwise in this Section, in the procurement plan | ||||||
9 | or in the implementing tariff, any procurement occurring in | ||||||
10 | accordance with this plan shall be competitively bid through a | ||||||
11 | request for proposals process. Approval and implementation of | ||||||
12 | the procurement plan shall be subject to review and approval | ||||||
13 | by the Commission according to the provisions set forth in | ||||||
14 | this Section. A procurement plan shall include each of the | ||||||
15 | following components: | ||||||
16 | (1) Hourly load analysis. This analysis shall include: | ||||||
17 | (i) multi-year historical analysis of hourly | ||||||
18 | loads; | ||||||
19 | (ii) switching trends and competitive retail | ||||||
20 | market analysis; | ||||||
21 | (iii) known or projected changes to future loads; | ||||||
22 | and | ||||||
23 | (iv) growth forecasts by customer class. | ||||||
24 | (2) Analysis of the impact of any demand side and | ||||||
25 | renewable energy initiatives. This analysis shall include: | ||||||
26 | (i) the impact of demand response programs and |
| |||||||
| |||||||
1 | energy efficiency programs, both current and | ||||||
2 | projected; for small multi-jurisdictional utilities, | ||||||
3 | the impact of demand response and energy efficiency | ||||||
4 | programs approved pursuant to Section 8-408 of this | ||||||
5 | Act, both current and projected; and | ||||||
6 | (ii) supply side needs that are projected to be | ||||||
7 | offset by purchases of renewable energy resources, if | ||||||
8 | any. | ||||||
9 | (3) A plan for meeting the expected load requirements | ||||||
10 | that will not be met through preexisting contracts. This | ||||||
11 | plan shall include: | ||||||
12 | (i) definitions of the different Illinois retail | ||||||
13 | customer classes for which supply is being purchased; | ||||||
14 | (ii) the proposed mix of demand-response products | ||||||
15 | for which contracts will be executed during the next | ||||||
16 | year. For small multi-jurisdictional electric | ||||||
17 | utilities that on December 31, 2005 served fewer than | ||||||
18 | 100,000 customers in Illinois, these shall be defined | ||||||
19 | as demand-response products offered in an energy | ||||||
20 | efficiency plan approved pursuant to Section 8-408 of | ||||||
21 | this Act. The cost-effective demand-response measures | ||||||
22 | shall be procured whenever the cost is lower than | ||||||
23 | procuring comparable capacity products, provided that | ||||||
24 | such products shall: | ||||||
25 | (A) be procured by a demand-response provider | ||||||
26 | from those retail customers included in the plan's |
| |||||||
| |||||||
1 | electric supply service requirements; | ||||||
2 | (B) at least satisfy the demand-response | ||||||
3 | requirements of the regional transmission | ||||||
4 | organization market in which the utility's service | ||||||
5 | territory is located, including, but not limited | ||||||
6 | to, any applicable capacity or dispatch | ||||||
7 | requirements; | ||||||
8 | (C) provide for customers' participation in | ||||||
9 | the stream of benefits produced by the | ||||||
10 | demand-response products; | ||||||
11 | (D) provide for reimbursement by the | ||||||
12 | demand-response provider of the utility for any | ||||||
13 | costs incurred as a result of the failure of the | ||||||
14 | supplier of such products to perform its | ||||||
15 | obligations thereunder; and | ||||||
16 | (E) meet the same credit requirements as apply | ||||||
17 | to suppliers of capacity, in the applicable | ||||||
18 | regional transmission organization market; | ||||||
19 | (iii) monthly forecasted system supply | ||||||
20 | requirements, including expected minimum, maximum, and | ||||||
21 | average values for the planning period; | ||||||
22 | (iv) the proposed mix and selection of standard | ||||||
23 | wholesale products for which contracts will be | ||||||
24 | executed during the next year, separately or in | ||||||
25 | combination, to meet that portion of its load | ||||||
26 | requirements not met through pre-existing contracts, |
| |||||||
| |||||||
1 | including but not limited to monthly 5 x 16 peak period | ||||||
2 | block energy, monthly off-peak wrap energy, monthly 7 | ||||||
3 | x 24 energy, annual 5 x 16 energy, annual off-peak wrap | ||||||
4 | energy, annual 7 x 24 energy, monthly capacity, annual | ||||||
5 | capacity, peak load capacity obligations, capacity | ||||||
6 | purchase plan, and ancillary services; | ||||||
7 | (v) proposed term structures for each wholesale | ||||||
8 | product type included in the proposed procurement plan | ||||||
9 | portfolio of products; and | ||||||
10 | (vi) an assessment of the price risk, load | ||||||
11 | uncertainty, and other factors that are associated | ||||||
12 | with the proposed procurement plan; this assessment, | ||||||
13 | to the extent possible, shall include an analysis of | ||||||
14 | the following factors: contract terms, time frames for | ||||||
15 | securing products or services, fuel costs, weather | ||||||
16 | patterns, transmission costs, market conditions, and | ||||||
17 | the governmental regulatory environment; the proposed | ||||||
18 | procurement plan shall also identify alternatives for | ||||||
19 | those portfolio measures that are identified as having | ||||||
20 | significant price risk. | ||||||
21 | (4) Proposed procedures for balancing loads. The | ||||||
22 | procurement plan shall include, for load requirements | ||||||
23 | included in the procurement plan, the process for (i) | ||||||
24 | hourly balancing of supply and demand and (ii) the | ||||||
25 | criteria for portfolio re-balancing in the event of | ||||||
26 | significant shifts in load. |
| |||||||
| |||||||
1 | (5) Long-Term Renewable Resources Procurement Plan. | ||||||
2 | The Agency shall prepare a long-term renewable resources | ||||||
3 | procurement plan for the procurement of renewable energy | ||||||
4 | credits under Sections 1-56 and 1-75 of the Illinois Power | ||||||
5 | Agency Act for delivery beginning in the 2017 delivery | ||||||
6 | year. | ||||||
7 | (i) The initial long-term renewable resources | ||||||
8 | procurement plan and all subsequent revisions shall be | ||||||
9 | subject to review and approval by the Commission. For | ||||||
10 | the purposes of this Section, "delivery year" has the | ||||||
11 | same meaning as in Section 1-10 of the Illinois Power | ||||||
12 | Agency Act. For purposes of this Section, "Agency" | ||||||
13 | shall mean the Illinois Power Agency. | ||||||
14 | (ii) The long-term renewable resources planning | ||||||
15 | process shall be conducted as follows: | ||||||
16 | (A) Electric utilities shall provide a range | ||||||
17 | of load forecasts to the Illinois Power Agency | ||||||
18 | within 45 days of the Agency's request for | ||||||
19 | forecasts, which request shall specify the length | ||||||
20 | and conditions for the forecasts including, but | ||||||
21 | not limited to, the quantity of distributed | ||||||
22 | generation expected to be interconnected for each | ||||||
23 | year. | ||||||
24 | (B) The Agency shall publish for comment the | ||||||
25 | initial long-term renewable resources procurement | ||||||
26 | plan no later than 120 days after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 99th General | ||||||
2 | Assembly and shall review, and may revise, the | ||||||
3 | plan at least every 2 years thereafter. To the | ||||||
4 | extent practicable, the Agency shall review and | ||||||
5 | propose any revisions to the long-term renewable | ||||||
6 | energy resources procurement plan in conjunction | ||||||
7 | with the Agency's other planning and approval | ||||||
8 | processes conducted under this Section. The | ||||||
9 | initial long-term renewable resources procurement | ||||||
10 | plan shall: | ||||||
11 | (aa) Identify the procurement programs and | ||||||
12 | competitive procurement events consistent with | ||||||
13 | the applicable requirements of the Illinois | ||||||
14 | Power Agency Act and shall be designed to | ||||||
15 | achieve the goals set forth in subsection (c) | ||||||
16 | of Section 1-75 of that Act. | ||||||
17 | (bb) Include a schedule for procurements | ||||||
18 | for renewable energy credits from | ||||||
19 | utility-scale wind projects, utility-scale | ||||||
20 | solar projects, and brownfield site | ||||||
21 | photovoltaic projects consistent with | ||||||
22 | subparagraph (G) of paragraph (1) of | ||||||
23 | subsection (c) of Section 1-75 of the Illinois | ||||||
24 | Power Agency Act. | ||||||
25 | (cc) Identify the process whereby the | ||||||
26 | Agency will submit to the Commission for |
| |||||||
| |||||||
1 | review and approval the proposed contracts to | ||||||
2 | implement the programs required by such plan. | ||||||
3 | Copies of the initial long-term renewable | ||||||
4 | resources procurement plan and all subsequent | ||||||
5 | revisions shall be posted and made publicly | ||||||
6 | available on the Agency's and Commission's | ||||||
7 | websites, and copies shall also be provided to | ||||||
8 | each affected electric utility. An affected | ||||||
9 | utility and other interested parties shall have 45 | ||||||
10 | days following the date of posting to provide | ||||||
11 | comment to the Agency on the initial long-term | ||||||
12 | renewable resources procurement plan and all | ||||||
13 | subsequent revisions. All comments submitted to | ||||||
14 | the Agency shall be specific, supported by data or | ||||||
15 | other detailed analyses, and, if objecting to all | ||||||
16 | or a portion of the procurement plan, accompanied | ||||||
17 | by specific alternative wording or proposals. All | ||||||
18 | comments shall be posted on the Agency's and | ||||||
19 | Commission's websites. During this 45-day comment | ||||||
20 | period, the Agency shall hold at least one public | ||||||
21 | hearing within each utility's service area that is | ||||||
22 | subject to the requirements of this paragraph (5) | ||||||
23 | for the purpose of receiving public comment. | ||||||
24 | Within 21 days following the end of the 45-day | ||||||
25 | review period, the Agency may revise the long-term | ||||||
26 | renewable resources procurement plan based on the |
| |||||||
| |||||||
1 | comments received and shall file the plan with the | ||||||
2 | Commission for review and approval. | ||||||
3 | (C) Within 14 days after the filing of the | ||||||
4 | initial long-term renewable resources procurement | ||||||
5 | plan or any subsequent revisions, any person | ||||||
6 | objecting to the plan may file an objection with | ||||||
7 | the Commission. Within 21 days after the filing of | ||||||
8 | the plan, the Commission shall determine whether a | ||||||
9 | hearing is necessary. The Commission shall enter | ||||||
10 | its order confirming or modifying the initial | ||||||
11 | long-term renewable resources procurement plan or | ||||||
12 | any subsequent revisions within 120 days after the | ||||||
13 | filing of the plan by the Illinois Power Agency. | ||||||
14 | (D) The Commission shall approve the initial | ||||||
15 | long-term renewable resources procurement plan and | ||||||
16 | any subsequent revisions, including expressly the | ||||||
17 | forecast used in the plan and taking into account | ||||||
18 | that funding will be limited to the amount of | ||||||
19 | revenues actually collected by the utilities, if | ||||||
20 | the Commission determines that the plan will | ||||||
21 | reasonably and prudently accomplish the | ||||||
22 | requirements of Section 1-56 and subsection (c) of | ||||||
23 | Section 1-75 of the Illinois Power Agency Act. The | ||||||
24 | Commission shall also approve the process for the | ||||||
25 | submission, review, and approval of the proposed | ||||||
26 | contracts to procure renewable energy credits or |
| |||||||
| |||||||
1 | implement the programs authorized by the | ||||||
2 | Commission pursuant to a long-term renewable | ||||||
3 | resources procurement plan approved under this | ||||||
4 | Section. | ||||||
5 | (iii) The Agency or third parties contracted by | ||||||
6 | the Agency shall implement all programs authorized by | ||||||
7 | the Commission in an approved long-term renewable | ||||||
8 | resources procurement plan without further review and | ||||||
9 | approval by the Commission. Third parties shall not | ||||||
10 | begin implementing any programs or receive any payment | ||||||
11 | under this Section until the Commission has approved | ||||||
12 | the contract or contracts under the process authorized | ||||||
13 | by the Commission in item (D) of subparagraph (ii) of | ||||||
14 | paragraph (5) of this subsection (b) and the third | ||||||
15 | party and the Agency or utility, as applicable, have | ||||||
16 | executed the contract. For those renewable energy | ||||||
17 | credits subject to procurement through a competitive | ||||||
18 | bid process under the plan or under the initial | ||||||
19 | forward procurements for wind and solar resources | ||||||
20 | described in subparagraph (G) of paragraph (1) of | ||||||
21 | subsection (c) of Section 1-75 of the Illinois Power | ||||||
22 | Agency Act, the Agency shall follow the procurement | ||||||
23 | process specified in the provisions relating to | ||||||
24 | electricity procurement in subsections (e) through (i) | ||||||
25 | of this Section. | ||||||
26 | (iv) An electric utility shall recover its costs |
| |||||||
| |||||||
1 | associated with the procurement of renewable energy | ||||||
2 | credits under this Section through an automatic | ||||||
3 | adjustment clause tariff under subsection (k) of | ||||||
4 | Section 16-108 of this Act. A utility shall not be | ||||||
5 | required to advance any payment or pay any amounts | ||||||
6 | under this Section that exceed the actual amount of | ||||||
7 | revenues collected by the utility under paragraph (6) | ||||||
8 | of subsection (c) of Section 1-75 of the Illinois | ||||||
9 | Power Agency Act and subsection (k) of Section 16-108 | ||||||
10 | of this Act, and contracts executed under this Section | ||||||
11 | shall expressly incorporate this limitation. | ||||||
12 | (v) For the public interest, safety, and welfare, | ||||||
13 | the Agency and the Commission may adopt rules to carry | ||||||
14 | out the provisions of this Section on an emergency | ||||||
15 | basis immediately following the effective date of this | ||||||
16 | amendatory Act of the 99th General Assembly. | ||||||
17 | (vi) On or before July 1 of each year, the | ||||||
18 | Commission shall hold an informal hearing for the | ||||||
19 | purpose of receiving comments on the prior year's | ||||||
20 | procurement process and any recommendations for | ||||||
21 | change. | ||||||
22 | (c) The procurement process set forth in Section 1-75 of | ||||||
23 | the Illinois Power Agency Act and subsection (e) of this | ||||||
24 | Section shall be administered by a procurement administrator | ||||||
25 | and monitored by a procurement monitor. | ||||||
26 | (1) The procurement administrator shall: |
| |||||||
| |||||||
1 | (i) design the final procurement process in | ||||||
2 | accordance with Section 1-75 of the Illinois Power | ||||||
3 | Agency Act and subsection (e) of this Section | ||||||
4 | following Commission approval of the procurement plan; | ||||||
5 | (ii) develop benchmarks in accordance with | ||||||
6 | subsection (e)(3) to be used to evaluate bids; these | ||||||
7 | benchmarks shall be submitted to the Commission for | ||||||
8 | review and approval on a confidential basis prior to | ||||||
9 | the procurement event; | ||||||
10 | (iii) serve as the interface between the electric | ||||||
11 | utility and suppliers; | ||||||
12 | (iv) manage the bidder pre-qualification and | ||||||
13 | registration process; | ||||||
14 | (v) obtain the electric utilities' agreement to | ||||||
15 | the final form of all supply contracts and credit | ||||||
16 | collateral agreements; | ||||||
17 | (vi) administer the request for proposals process; | ||||||
18 | (vii) have the discretion to negotiate to | ||||||
19 | determine whether bidders are willing to lower the | ||||||
20 | price of bids that meet the benchmarks approved by the | ||||||
21 | Commission; any post-bid negotiations with bidders | ||||||
22 | shall be limited to price only and shall be completed | ||||||
23 | within 24 hours after opening the sealed bids and | ||||||
24 | shall be conducted in a fair and unbiased manner; in | ||||||
25 | conducting the negotiations, there shall be no | ||||||
26 | disclosure of any information derived from proposals |
| |||||||
| |||||||
1 | submitted by competing bidders; if information is | ||||||
2 | disclosed to any bidder, it shall be provided to all | ||||||
3 | competing bidders; | ||||||
4 | (viii) maintain confidentiality of supplier and | ||||||
5 | bidding information in a manner consistent with all | ||||||
6 | applicable laws, rules, regulations, and tariffs; | ||||||
7 | (ix) submit a confidential report to the | ||||||
8 | Commission recommending acceptance or rejection of | ||||||
9 | bids; | ||||||
10 | (x) notify the utility of contract counterparties | ||||||
11 | and contract specifics; and | ||||||
12 | (xi) administer related contingency procurement | ||||||
13 | events. | ||||||
14 | (2) The procurement monitor, who shall be retained by | ||||||
15 | the Commission, shall: | ||||||
16 | (i) monitor interactions among the procurement | ||||||
17 | administrator, suppliers, and utility; | ||||||
18 | (ii) monitor and report to the Commission on the | ||||||
19 | progress of the procurement process; | ||||||
20 | (iii) provide an independent confidential report | ||||||
21 | to the Commission regarding the results of the | ||||||
22 | procurement event; | ||||||
23 | (iv) assess compliance with the procurement plans | ||||||
24 | approved by the Commission for each utility that on | ||||||
25 | December 31, 2005 provided electric service to at | ||||||
26 | least 100,000 customers in Illinois and for each small |
| |||||||
| |||||||
1 | multi-jurisdictional utility that on December 31, 2005 | ||||||
2 | served less than 100,000 customers in Illinois; | ||||||
3 | (v) preserve the confidentiality of supplier and | ||||||
4 | bidding information in a manner consistent with all | ||||||
5 | applicable laws, rules, regulations, and tariffs; | ||||||
6 | (vi) provide expert advice to the Commission and | ||||||
7 | consult with the procurement administrator regarding | ||||||
8 | issues related to procurement process design, rules, | ||||||
9 | protocols, and policy-related matters; and | ||||||
10 | (vii) consult with the procurement administrator | ||||||
11 | regarding the development and use of benchmark | ||||||
12 | criteria, standard form contracts, credit policies, | ||||||
13 | and bid documents. | ||||||
14 | (d) Except as provided in subsection (j), the planning | ||||||
15 | process shall be conducted as follows: | ||||||
16 | (1) Beginning in 2008, each Illinois utility procuring | ||||||
17 | power pursuant to this Section shall annually provide a | ||||||
18 | range of load forecasts to the Illinois Power Agency by | ||||||
19 | July 15 of each year, or such other date as may be required | ||||||
20 | by the Commission or Agency. The load forecasts shall | ||||||
21 | cover the 5-year procurement planning period for the next | ||||||
22 | procurement plan and shall include hourly data | ||||||
23 | representing a high-load, low-load, and expected-load | ||||||
24 | scenario for the load of those retail customers included | ||||||
25 | in the plan's electric supply service requirements. The | ||||||
26 | utility shall provide supporting data and assumptions for |
| |||||||
| |||||||
1 | each of the scenarios.
| ||||||
2 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
3 | prepare a procurement plan by August 15th of each year, or | ||||||
4 | such other date as may be required by the Commission. The | ||||||
5 | procurement plan shall identify the portfolio of | ||||||
6 | demand-response and power and energy products to be | ||||||
7 | procured. Cost-effective demand-response measures shall be | ||||||
8 | procured as set forth in item (iii) of subsection (b) of | ||||||
9 | this Section. Copies of the procurement plan shall be | ||||||
10 | posted and made publicly available on the Agency's and | ||||||
11 | Commission's websites, and copies shall also be provided | ||||||
12 | to each affected electric utility. An affected utility | ||||||
13 | shall have 30 days following the date of posting to | ||||||
14 | provide comment to the Agency on the procurement plan. | ||||||
15 | Other interested entities also may comment on the | ||||||
16 | procurement plan. All comments submitted to the Agency | ||||||
17 | shall be specific, supported by data or other detailed | ||||||
18 | analyses, and, if objecting to all or a portion of the | ||||||
19 | procurement plan, accompanied by specific alternative | ||||||
20 | wording or proposals. All comments shall be posted on the | ||||||
21 | Agency's and Commission's websites. During this 30-day | ||||||
22 | comment period, the Agency shall hold at least one public | ||||||
23 | hearing within each utility's service area for the purpose | ||||||
24 | of receiving public comment on the procurement plan. | ||||||
25 | Within 14 days following the end of the 30-day review | ||||||
26 | period, the Agency shall revise the procurement plan as |
| |||||||
| |||||||
1 | necessary based on the comments received and file the | ||||||
2 | procurement plan with the Commission and post the | ||||||
3 | procurement plan on the websites. | ||||||
4 | (3) Within 5 days after the filing of the procurement | ||||||
5 | plan, any person objecting to the procurement plan shall | ||||||
6 | file an objection with the Commission. Within 10 days | ||||||
7 | after the filing, the Commission shall determine whether a | ||||||
8 | hearing is necessary. The Commission shall enter its order | ||||||
9 | confirming or modifying the procurement plan within 90 | ||||||
10 | days after the filing of the procurement plan by the | ||||||
11 | Illinois Power Agency. | ||||||
12 | (4) The Commission shall approve the procurement plan, | ||||||
13 | including expressly the forecast used in the procurement | ||||||
14 | plan, if the Commission determines that it will ensure | ||||||
15 | adequate, reliable, affordable, efficient, and | ||||||
16 | environmentally sustainable electric service at the lowest | ||||||
17 | total cost over time, taking into account any benefits of | ||||||
18 | price stability. | ||||||
19 | (e) The procurement process shall include each of the | ||||||
20 | following components: | ||||||
21 | (1) Solicitation, pre-qualification, and registration | ||||||
22 | of bidders. The procurement administrator shall | ||||||
23 | disseminate information to potential bidders to promote a | ||||||
24 | procurement event, notify potential bidders that the | ||||||
25 | procurement administrator may enter into a post-bid price | ||||||
26 | negotiation with bidders that meet the applicable |
| |||||||
| |||||||
1 | benchmarks, provide supply requirements, and otherwise | ||||||
2 | explain the competitive procurement process. In addition | ||||||
3 | to such other publication as the procurement administrator | ||||||
4 | determines is appropriate, this information shall be | ||||||
5 | posted on the Illinois Power Agency's and the Commission's | ||||||
6 | websites. The procurement administrator shall also | ||||||
7 | administer the prequalification process, including | ||||||
8 | evaluation of credit worthiness, compliance with | ||||||
9 | procurement rules, and agreement to the standard form | ||||||
10 | contract developed pursuant to paragraph (2) of this | ||||||
11 | subsection (e). The procurement administrator shall then | ||||||
12 | identify and register bidders to participate in the | ||||||
13 | procurement event. | ||||||
14 | (2) Standard contract forms and credit terms and | ||||||
15 | instruments. The procurement administrator, in | ||||||
16 | consultation with the utilities, the Commission, and other | ||||||
17 | interested parties and subject to Commission oversight, | ||||||
18 | shall develop and provide standard contract forms for the | ||||||
19 | supplier contracts that meet generally accepted industry | ||||||
20 | practices. Standard credit terms and instruments that meet | ||||||
21 | generally accepted industry practices shall be similarly | ||||||
22 | developed. The procurement administrator shall make | ||||||
23 | available to the Commission all written comments it | ||||||
24 | receives on the contract forms, credit terms, or | ||||||
25 | instruments. If the procurement administrator cannot reach | ||||||
26 | agreement with the applicable electric utility as to the |
| |||||||
| |||||||
1 | contract terms and conditions, the procurement | ||||||
2 | administrator must notify the Commission of any disputed | ||||||
3 | terms and the Commission shall resolve the dispute. The | ||||||
4 | terms of the contracts shall not be subject to negotiation | ||||||
5 | by winning bidders, and the bidders must agree to the | ||||||
6 | terms of the contract in advance so that winning bids are | ||||||
7 | selected solely on the basis of price. | ||||||
8 | (3) Establishment of a market-based price benchmark. | ||||||
9 | As part of the development of the procurement process, the | ||||||
10 | procurement administrator, in consultation with the | ||||||
11 | Commission staff, Agency staff, and the procurement | ||||||
12 | monitor, shall establish benchmarks for evaluating the | ||||||
13 | final prices in the contracts for each of the products | ||||||
14 | that will be procured through the procurement process. The | ||||||
15 | benchmarks shall be based on price data for similar | ||||||
16 | products for the same delivery period and same delivery | ||||||
17 | hub, or other delivery hubs after adjusting for that | ||||||
18 | difference. The price benchmarks may also be adjusted to | ||||||
19 | take into account differences between the information | ||||||
20 | reflected in the underlying data sources and the specific | ||||||
21 | products and procurement process being used to procure | ||||||
22 | power for the Illinois utilities. The benchmarks shall be | ||||||
23 | confidential but shall be provided to, and will be subject | ||||||
24 | to Commission review and approval, prior to a procurement | ||||||
25 | event. | ||||||
26 | (4) Request for proposals competitive procurement |
| |||||||
| |||||||
1 | process. The procurement administrator shall design and | ||||||
2 | issue a request for proposals to supply electricity in | ||||||
3 | accordance with each utility's procurement plan, as | ||||||
4 | approved by the Commission. The request for proposals | ||||||
5 | shall set forth a procedure for sealed, binding commitment | ||||||
6 | bidding with pay-as-bid settlement, and provision for | ||||||
7 | selection of bids on the basis of price. | ||||||
8 | (5) A plan for implementing contingencies in the event | ||||||
9 | of supplier default or failure of the procurement process | ||||||
10 | to fully meet the expected load requirement due to | ||||||
11 | insufficient supplier participation, Commission rejection | ||||||
12 | of results, or any other cause. | ||||||
13 | (i) Event of supplier default: In the event of | ||||||
14 | supplier default, the utility shall review the | ||||||
15 | contract of the defaulting supplier to determine if | ||||||
16 | the amount of supply is 200 megawatts or greater, and | ||||||
17 | if there are more than 60 days remaining of the | ||||||
18 | contract term. If both of these conditions are met, | ||||||
19 | and the default results in termination of the | ||||||
20 | contract, the utility shall immediately notify the | ||||||
21 | Illinois Power Agency that a request for proposals | ||||||
22 | must be issued to procure replacement power, and the | ||||||
23 | procurement administrator shall run an additional | ||||||
24 | procurement event. If the contracted supply of the | ||||||
25 | defaulting supplier is less than 200 megawatts or | ||||||
26 | there are less than 60 days remaining of the contract |
| |||||||
| |||||||
1 | term, the utility shall procure power and energy from | ||||||
2 | the applicable regional transmission organization | ||||||
3 | market, including ancillary services, capacity, and | ||||||
4 | day-ahead or real time energy, or both, for the | ||||||
5 | duration of the contract term to replace the | ||||||
6 | contracted supply; provided, however, that if a needed | ||||||
7 | product is not available through the regional | ||||||
8 | transmission organization market it shall be purchased | ||||||
9 | from the wholesale market. | ||||||
10 | (ii) Failure of the procurement process to fully | ||||||
11 | meet the expected load requirement: If the procurement | ||||||
12 | process fails to fully meet the expected load | ||||||
13 | requirement due to insufficient supplier participation | ||||||
14 | or due to a Commission rejection of the procurement | ||||||
15 | results, the procurement administrator, the | ||||||
16 | procurement monitor, and the Commission staff shall | ||||||
17 | meet within 10 days to analyze potential causes of low | ||||||
18 | supplier interest or causes for the Commission | ||||||
19 | decision. If changes are identified that would likely | ||||||
20 | result in increased supplier participation, or that | ||||||
21 | would address concerns causing the Commission to | ||||||
22 | reject the results of the prior procurement event, the | ||||||
23 | procurement administrator may implement those changes | ||||||
24 | and rerun the request for proposals process according | ||||||
25 | to a schedule determined by those parties and | ||||||
26 | consistent with Section 1-75 of the Illinois Power |
| |||||||
| |||||||
1 | Agency Act and this subsection. In any event, a new | ||||||
2 | request for proposals process shall be implemented by | ||||||
3 | the procurement administrator within 90 days after the | ||||||
4 | determination that the procurement process has failed | ||||||
5 | to fully meet the expected load requirement. | ||||||
6 | (iii) In all cases where there is insufficient | ||||||
7 | supply provided under contracts awarded through the | ||||||
8 | procurement process to fully meet the electric | ||||||
9 | utility's load requirement, the utility shall meet the | ||||||
10 | load requirement by procuring power and energy from | ||||||
11 | the applicable regional transmission organization | ||||||
12 | market, including ancillary services, capacity, and | ||||||
13 | day-ahead or real time energy, or both; provided, | ||||||
14 | however, that if a needed product is not available | ||||||
15 | through the regional transmission organization market | ||||||
16 | it shall be purchased from the wholesale market. | ||||||
17 | (6) The procurement process described in this | ||||||
18 | subsection is exempt from the requirements of the Illinois | ||||||
19 | Procurement Code, pursuant to Section 20-10 of that Code. | ||||||
20 | (f) Within 2 business days after opening the sealed bids, | ||||||
21 | the procurement administrator shall submit a confidential | ||||||
22 | report to the Commission. The report shall contain the results | ||||||
23 | of the bidding for each of the products along with the | ||||||
24 | procurement administrator's recommendation for the acceptance | ||||||
25 | and rejection of bids based on the price benchmark criteria | ||||||
26 | and other factors observed in the process. The procurement |
| |||||||
| |||||||
1 | monitor also shall submit a confidential report to the | ||||||
2 | Commission within 2 business days after opening the sealed | ||||||
3 | bids. The report shall contain the procurement monitor's | ||||||
4 | assessment of bidder behavior in the process as well as an | ||||||
5 | assessment of the procurement administrator's compliance with | ||||||
6 | the procurement process and rules. The Commission shall review | ||||||
7 | the confidential reports submitted by the procurement | ||||||
8 | administrator and procurement monitor, and shall accept or | ||||||
9 | reject the recommendations of the procurement administrator | ||||||
10 | within 2 business days after receipt of the reports. | ||||||
11 | (g) Within 3 business days after the Commission decision | ||||||
12 | approving the results of a procurement event, the utility | ||||||
13 | shall enter into binding contractual arrangements with the | ||||||
14 | winning suppliers using the standard form contracts; except | ||||||
15 | that the utility shall not be required either directly or | ||||||
16 | indirectly to execute the contracts if a tariff that is | ||||||
17 | consistent with subsection (l) of this Section has not been | ||||||
18 | approved and placed into effect for that utility. | ||||||
19 | (h) The names of the successful bidders and the load | ||||||
20 | weighted average of the winning bid prices for each contract | ||||||
21 | type and for each contract term shall be made available to the | ||||||
22 | public at the time of Commission approval of a procurement | ||||||
23 | event. The Commission, the procurement monitor, the | ||||||
24 | procurement administrator, the Illinois Power Agency, and all | ||||||
25 | participants in the procurement process shall maintain the | ||||||
26 | confidentiality of all other supplier and bidding information |
| |||||||
| |||||||
1 | in a manner consistent with all applicable laws, rules, | ||||||
2 | regulations, and tariffs. Confidential information, including | ||||||
3 | the confidential reports submitted by the procurement | ||||||
4 | administrator and procurement monitor pursuant to subsection | ||||||
5 | (f) of this Section, shall not be made publicly available and | ||||||
6 | shall not be discoverable by any party in any proceeding, | ||||||
7 | absent a compelling demonstration of need, nor shall those | ||||||
8 | reports be admissible in any proceeding other than one for law | ||||||
9 | enforcement purposes. | ||||||
10 | (i) Within 2 business days after a Commission decision | ||||||
11 | approving the results of a procurement event or such other | ||||||
12 | date as may be required by the Commission from time to time, | ||||||
13 | the utility shall file for informational purposes with the | ||||||
14 | Commission its actual or estimated retail supply charges, as | ||||||
15 | applicable, by customer supply group reflecting the costs | ||||||
16 | associated with the procurement and computed in accordance | ||||||
17 | with the tariffs filed pursuant to subsection (l) of this | ||||||
18 | Section and approved by the Commission. | ||||||
19 | (j) Within 60 days following August 28, 2007 (the | ||||||
20 | effective date of Public Act 95-481), each electric utility | ||||||
21 | that on December 31, 2005 provided electric service to at | ||||||
22 | least 100,000 customers in Illinois shall prepare and file | ||||||
23 | with the Commission an initial procurement plan, which shall | ||||||
24 | conform in all material respects to the requirements of the | ||||||
25 | procurement plan set forth in subsection (b); provided, | ||||||
26 | however, that the Illinois Power Agency Act shall not apply to |
| |||||||
| |||||||
1 | the initial procurement plan prepared pursuant to this | ||||||
2 | subsection. The initial procurement plan shall identify the | ||||||
3 | portfolio of power and energy products to be procured and | ||||||
4 | delivered for the period June 2008 through May 2009, and shall | ||||||
5 | identify the proposed procurement administrator, who shall | ||||||
6 | have the same experience and expertise as is required of a | ||||||
7 | procurement administrator hired pursuant to Section 1-75 of | ||||||
8 | the Illinois Power Agency Act. Copies of the procurement plan | ||||||
9 | shall be posted and made publicly available on the | ||||||
10 | Commission's website. The initial procurement plan may include | ||||||
11 | contracts for renewable resources that extend beyond May 2009. | ||||||
12 | (i) Within 14 days following filing of the initial | ||||||
13 | procurement plan, any person may file a detailed objection | ||||||
14 | with the Commission contesting the procurement plan | ||||||
15 | submitted by the electric utility. All objections to the | ||||||
16 | electric utility's plan shall be specific, supported by | ||||||
17 | data or other detailed analyses. The electric utility may | ||||||
18 | file a response to any objections to its procurement plan | ||||||
19 | within 7 days after the date objections are due to be | ||||||
20 | filed. Within 7 days after the date the utility's response | ||||||
21 | is due, the Commission shall determine whether a hearing | ||||||
22 | is necessary. If it determines that a hearing is | ||||||
23 | necessary, it shall require the hearing to be completed | ||||||
24 | and issue an order on the procurement plan within 60 days | ||||||
25 | after the filing of the procurement plan by the electric | ||||||
26 | utility. |
| |||||||
| |||||||
1 | (ii) The order shall approve or modify the procurement | ||||||
2 | plan, approve an independent procurement administrator, | ||||||
3 | and approve or modify the electric utility's tariffs that | ||||||
4 | are proposed with the initial procurement plan. The | ||||||
5 | Commission shall approve the procurement plan if the | ||||||
6 | Commission determines that it will ensure adequate, | ||||||
7 | reliable, affordable, efficient, and environmentally | ||||||
8 | sustainable electric service at the lowest total cost over | ||||||
9 | time, taking into account any benefits of price stability. | ||||||
10 | (k) (Blank). | ||||||
11 | (k-5) (Blank). | ||||||
12 | (l) An electric utility shall recover its costs incurred | ||||||
13 | under this Section, including, but not limited to, the costs | ||||||
14 | of procuring power and energy demand-response resources under | ||||||
15 | this Section. The utility shall file with the initial | ||||||
16 | procurement plan its proposed tariffs through which its costs | ||||||
17 | of procuring power that are incurred pursuant to a | ||||||
18 | Commission-approved procurement plan and those other costs | ||||||
19 | identified in this subsection (l), will be recovered. The | ||||||
20 | tariffs shall include a formula rate or charge designed to | ||||||
21 | pass through both the costs incurred by the utility in | ||||||
22 | procuring a supply of electric power and energy for the | ||||||
23 | applicable customer classes with no mark-up or return on the | ||||||
24 | price paid by the utility for that supply, plus any just and | ||||||
25 | reasonable costs that the utility incurs in arranging and | ||||||
26 | providing for the supply of electric power and energy. The |
| |||||||
| |||||||
1 | formula rate or charge shall also contain provisions that | ||||||
2 | ensure that its application does not result in over or under | ||||||
3 | recovery due to changes in customer usage and demand patterns, | ||||||
4 | and that provide for the correction, on at least an annual | ||||||
5 | basis, of any accounting errors that may occur. A utility | ||||||
6 | shall recover through the tariff all reasonable costs incurred | ||||||
7 | to implement or comply with any procurement plan that is | ||||||
8 | developed and put into effect pursuant to Section 1-75 of the | ||||||
9 | Illinois Power Agency Act and this Section, including any fees | ||||||
10 | assessed by the Illinois Power Agency, costs associated with | ||||||
11 | load balancing, and contingency plan costs. The electric | ||||||
12 | utility shall also recover its full costs of procuring | ||||||
13 | electric supply for which it contracted before the effective | ||||||
14 | date of this Section in conjunction with the provision of full | ||||||
15 | requirements service under fixed-price bundled service tariffs | ||||||
16 | subsequent to December 31, 2006. All such costs shall be | ||||||
17 | deemed to have been prudently incurred. The pass-through | ||||||
18 | tariffs that are filed and approved pursuant to this Section | ||||||
19 | shall not be subject to review under, or in any way limited by, | ||||||
20 | Section 16-111(i) of this Act. All of the costs incurred by the | ||||||
21 | electric utility associated with the purchase of zero emission | ||||||
22 | credits in accordance with subsection (d-5) of Section 1-75 of | ||||||
23 | the Illinois Power Agency Act , all costs incurred by the | ||||||
24 | electric utility associated with the purchase of carbon | ||||||
25 | mitigation credits in accordance with subsection (d-10) of | ||||||
26 | Section 1-75 of the Illinois Power Agency Act, and, beginning |
| |||||||
| |||||||
1 | June 1, 2017, all of the costs incurred by the electric utility | ||||||
2 | associated with the purchase of renewable energy resources in | ||||||
3 | accordance with Sections 1-56 and 1-75 of the Illinois Power | ||||||
4 | Agency Act, shall be recovered through the electric utility's | ||||||
5 | tariffed charges applicable to all of its retail customers, as | ||||||
6 | specified in subsection (k) of Section 16-108 of this Act, and | ||||||
7 | shall not be recovered through the electric utility's tariffed | ||||||
8 | charges for electric power and energy supply to its eligible | ||||||
9 | retail customers. | ||||||
10 | (m) The Commission has the authority to adopt rules to | ||||||
11 | carry out the provisions of this Section. For the public | ||||||
12 | interest, safety, and welfare, the Commission also has | ||||||
13 | authority to adopt rules to carry out the provisions of this | ||||||
14 | Section on an emergency basis immediately following August 28, | ||||||
15 | 2007 (the effective date of Public Act 95-481). | ||||||
16 | (n) Notwithstanding any other provision of this Act, any | ||||||
17 | affiliated electric utilities that submit a single procurement | ||||||
18 | plan covering their combined needs may procure for those | ||||||
19 | combined needs in conjunction with that plan, and may enter | ||||||
20 | jointly into power supply contracts, purchases, and other | ||||||
21 | procurement arrangements, and allocate capacity and energy and | ||||||
22 | cost responsibility therefor among themselves in proportion to | ||||||
23 | their requirements. | ||||||
24 | (o) On or before June 1 of each year, the Commission shall | ||||||
25 | hold an informal hearing for the purpose of receiving comments | ||||||
26 | on the prior year's procurement process and any |
| |||||||
| |||||||
1 | recommendations for change.
| ||||||
2 | (p) An electric utility subject to this Section may | ||||||
3 | propose to invest, lease, own, or operate an electric | ||||||
4 | generation facility as part of its procurement plan, provided | ||||||
5 | the utility demonstrates that such facility is the least-cost | ||||||
6 | option to provide electric service to those retail customers | ||||||
7 | included in the plan's electric supply service requirements. | ||||||
8 | If the facility is shown to be the least-cost option and is | ||||||
9 | included in a procurement plan prepared in accordance with | ||||||
10 | Section 1-75 of the Illinois Power Agency Act and this | ||||||
11 | Section, then the electric utility shall make a filing | ||||||
12 | pursuant to Section 8-406 of this Act, and may request of the | ||||||
13 | Commission any statutory relief required thereunder. If the | ||||||
14 | Commission grants all of the necessary approvals for the | ||||||
15 | proposed facility, such supply shall thereafter be considered | ||||||
16 | as a pre-existing contract under subsection (b) of this | ||||||
17 | Section. The Commission shall in any order approving a | ||||||
18 | proposal under this subsection specify how the utility will | ||||||
19 | recover the prudently incurred costs of investing in, leasing, | ||||||
20 | owning, or operating such generation facility through just and | ||||||
21 | reasonable rates charged to those retail customers included in | ||||||
22 | the plan's electric supply service requirements. Cost recovery | ||||||
23 | for facilities included in the utility's procurement plan | ||||||
24 | pursuant to this subsection shall not be subject to review | ||||||
25 | under or in any way limited by the provisions of Section | ||||||
26 | 16-111(i) of this Act. Nothing in this Section is intended to |
| |||||||
| |||||||
1 | prohibit a utility from filing for a fuel adjustment clause as | ||||||
2 | is otherwise permitted under Section 9-220 of this Act.
| ||||||
3 | (q) If the Illinois Power Agency filed with the | ||||||
4 | Commission, under Section 16-111.5 of this Act, its proposed | ||||||
5 | procurement plan for the period commencing June 1, 2017, and | ||||||
6 | the Commission has not yet entered its final order approving | ||||||
7 | the plan on or before the effective date of this amendatory Act | ||||||
8 | of the 99th General Assembly, then the Illinois Power Agency | ||||||
9 | shall file a notice of withdrawal with the Commission, after | ||||||
10 | the effective date of this amendatory Act of the 99th General | ||||||
11 | Assembly, to withdraw the proposed procurement of renewable | ||||||
12 | energy resources to be approved under the plan, other than the | ||||||
13 | procurement of renewable energy credits from distributed | ||||||
14 | renewable energy generation devices using funds previously | ||||||
15 | collected from electric utilities' retail customers that take | ||||||
16 | service pursuant to electric utilities' hourly pricing tariff | ||||||
17 | or tariffs and, for an electric utility that serves less than | ||||||
18 | 100,000 retail customers in the State, other than the | ||||||
19 | procurement of renewable energy credits from distributed | ||||||
20 | renewable energy generation devices. Upon receipt of the | ||||||
21 | notice, the Commission shall enter an order that approves the | ||||||
22 | withdrawal of the proposed procurement of renewable energy | ||||||
23 | resources from the plan. The initially proposed procurement of | ||||||
24 | renewable energy resources shall not be approved or be the | ||||||
25 | subject of any further hearing, investigation, proceeding, or | ||||||
26 | order of any kind. |
| |||||||
| |||||||
1 | This amendatory Act of the 99th General Assembly preempts | ||||||
2 | and supersedes any order entered by the Commission that | ||||||
3 | approved the Illinois Power Agency's procurement plan for the | ||||||
4 | period commencing June 1, 2017, to the extent it is | ||||||
5 | inconsistent with the provisions of this amendatory Act of the | ||||||
6 | 99th General Assembly. To the extent any previously entered | ||||||
7 | order approved the procurement of renewable energy resources, | ||||||
8 | the portion of that order approving the procurement shall be | ||||||
9 | void, other than the procurement of renewable energy credits | ||||||
10 | from distributed renewable energy generation devices using | ||||||
11 | funds previously collected from electric utilities' retail | ||||||
12 | customers that take service under electric utilities' hourly | ||||||
13 | pricing tariff or tariffs and, for an electric utility that | ||||||
14 | serves less than 100,000 retail customers in the State, other | ||||||
15 | than the procurement of renewable energy credits for | ||||||
16 | distributed renewable energy generation devices. | ||||||
17 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
18 | (220 ILCS 5/16-127)
| ||||||
19 | Sec. 16-127. Environmental disclosure.
| ||||||
20 | (a) Every Effective January 1, 2013, every electric | ||||||
21 | utility and
alternative retail electric supplier shall provide | ||||||
22 | the
following information, to the maximum extent practicable, | ||||||
23 | to its customers on a quarterly basis:
| ||||||
24 | (i) the known sources of electricity supplied,
| ||||||
25 | broken-out by percentages, of biomass power, coal-fired
|
| |||||||
| |||||||
1 | power, hydro power, natural gas-fired power, nuclear
| ||||||
2 | power, oil-fired power, solar power, wind power and other
| ||||||
3 | resources, respectively;
| ||||||
4 | (ii) a pie chart that graphically depicts the
| ||||||
5 | percentages of the sources of the electricity supplied as
| ||||||
6 | set forth in subparagraph (i) of this subsection;
| ||||||
7 | (iii) a pie chart that graphically depicts the | ||||||
8 | quantity of renewable energy resources procured pursuant | ||||||
9 | to Section 1-75 of the Illinois Power Agency Act as a | ||||||
10 | percentage of electricity supplied to serve eligible | ||||||
11 | retail customers as defined in Section 16-111.5(a) of this | ||||||
12 | Act; and | ||||||
13 | (iv) after May, 31, 2017, a pie chart that graphically | ||||||
14 | depicts the quantity of zero emission credits from zero | ||||||
15 | emission facilities procured under Section 1-75 of the | ||||||
16 | Illinois Power Agency Act as a percentage of the actual | ||||||
17 | load of retail customers within its service area and, for | ||||||
18 | an electric utility serving over 3,000,000 customers, the | ||||||
19 | quantity of carbon mitigation credits from carbon-free | ||||||
20 | energy resources procured under Section 1-75 of the | ||||||
21 | Illinois Power Agency Act, which may be depicted in | ||||||
22 | combination with the zero emission credits procured .
| ||||||
23 | (b) In addition, every electric utility and alternative
| ||||||
24 | retail electric supplier shall provide, to the maximum extent
| ||||||
25 | practicable, to its customers on a quarterly
basis, a | ||||||
26 | standardized chart in a format to be determined by
the |
| |||||||
| |||||||
1 | Commission in a rule following notice and hearings which
| ||||||
2 | provides the amounts of carbon dioxide,
nitrogen oxides
and | ||||||
3 | sulfur dioxide emissions and nuclear waste
attributable to the | ||||||
4 | known sources of electricity supplied as
set forth in | ||||||
5 | subparagraph (i) of subsection (a) of this
Section.
| ||||||
6 | (c) The electric utilities and alternative retail
electric | ||||||
7 | suppliers may provide their customers with such other
| ||||||
8 | information as they believe relevant to the information
| ||||||
9 | required in subsections (a) and (b) of this Section. All of the | ||||||
10 | information required in subsections (a) and (b) of this | ||||||
11 | Section shall be made available by the electric utilities or | ||||||
12 | alternative retail electric suppliers either in an electronic | ||||||
13 | medium, such as on a website or by electronic mail, or through | ||||||
14 | the U.S. Postal Service.
| ||||||
15 | (d) For the purposes of subsection (a) of this Section,
| ||||||
16 | "biomass" means dedicated crops grown for energy production
| ||||||
17 | and organic wastes.
| ||||||
18 | (e) All of the information provided in subsections (a)
and | ||||||
19 | (b) of this Section shall be presented to the Commission
for | ||||||
20 | inclusion in its World Wide Web Site.
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21 | (Source: P.A. 99-906, eff. 6-1-17 .)
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22 | Section 97. Severability. The provisions of this Act are | ||||||
23 | severable under Section 1.31 of the Statute on Statutes.
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24 | Section 99. Effective date. This Act takes effect upon |
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1 | becoming law.".
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